The unexpected decline in the core Consumer Price Index (CPI) has significantly influenced Bitcoin's price movement today. With the core CPI rising by only 0.2% in December, slightly below expectations, investors are interpreting this as a sign of easing inflationary pressures. This development has reduced concerns over aggressive interest rate hikes, enhancing Bitcoin's appeal as a hedge against inflation. The broader cryptocurrency market is also showing signs of recovery, with Bitcoin rebounding past the $97,000 mark after a recent dip. This recovery is supported by a general market rally, as indicated by a 2.5% increase in Bitcoin's price over the last 24 hours.
The ProShares Bitcoin Strategy ETF (BITO) has responded positively to these developments, climbing 2.69% to $24.07 as of 9:00 AM on Wednesday, January 15.