| Key Points: – Soft U.S. CPI expected; markets eye cooling inflation and steady Fed. – Crypto markets hold steady as traders await today’s inflation print. – Bitcoin remains range-bound amid cautious positioning and policy path uncertainty. |
Wall Street is bracing for a soft U.S. Consumer Price Index (CPI) reading today, with the Bureau of Labor Statistics release in focus. Crypto markets remain steady as participants look for confirmation that inflation pressures continue to cool and the Federal Reserve can stay on hold.
Positioning across risk assets is cautious into the print, and liquidity-sensitive segments have avoided outsized moves. Bitcoin has been range-bound as traders await clarity on how today’s data may influence the near-term policy path.
What today’s CPI means for rate-cut odds
As reported by CoinPaper, the most recent CPI held at 2.7% year over year for December 2025, with core at 2.6%, and monthly gains of 0.3% for headline and 0.2% for core. A similar or softer outcome today would be consistent with a cooling trajectory that tempers concerns about re-acceleration.
Disinflationary momentum, if confirmed, generally lowers the perceived probability of further tightening and incrementally supports rate-cut odds later, subject to subsequent labor and PCE readings. Michael Pearce, Chief U.S. Economist at Oxford Economics, said inflation may have “peaked,” while noting residual noise in recent figures, as reported by The Wall Street Journal. Seema Shah, Global Strategist at Principal Asset Management, added that price growth is not accelerating, “but it remains a challenge,” as reported by CBS News.
What today’s CPI means for rate-cut odds
Fed likely on hold until summer, per market chatter
According to Forex.com, sticky inflation dynamics could keep the Federal Reserve on hold until the summer if today’s numbers broadly meet expectations. That stance aligns with cautious positioning into the weekend across macro-sensitive assets.
In such a scenario, softer inflation prints typically strengthen the case for eventual easing, though the timeline depends on a broader mix of data, including jobs and PCE. A benign CPI reduces the pressure to tighten further, without guaranteeing imminent cuts.
BLS headline vs core CPI: why markets care
According to the U.S. Bureau of Labor Statistics, markets track both the headline index and the core measure that excludes food and energy. This helps distinguish energy-driven volatility from underlying price trends that are more relevant to policy.
Core’s behavior is often viewed as a better gauge of persistence, while headline captures the full consumer basket. For risk assets like crypto, the balance between cooling inflation and still-restrictive policy tends to matter more than any single datapoint.
At the time of writing, Coinbase Global (COIN) was quoted at $165.86 in after-hours trading, based on NasdaqGS delayed data. That offers an additional read on listed crypto-exposed equities alongside spot digital-asset moves.
Disclaimer:
The information provided on AiCryptoCore.com is for educational and informational purposes only and does not constitute financial, investment, or trading advice. Cryptocurrency investments involve risk and may result in financial loss. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.
