In this video: we talk about the current CPI (inflation) report and how it may affect risk assets like Bitcoin, Altcoins, and Stocks. Video by Benjamin Cowen.
The Consumer Price Index (CPI) report released in December 2025 showed a cooling inflation trend, with headline inflation falling to 2.7% (down from 3% in September) and core inflation hitting 2.6%, its lowest level since 2021.
While the numbers were "cooler" than the 3.1% forecast, economists noted that a government shutdown in late 2024 disrupted data collection, potentially biasing these results downward.
Buy Bitcoin >>
Impact on Risk Assets
Stocks: Equities reacted positively to the lower-than-expected numbers. The Dow Jones and S&P 500 snapped four-session losing streaks immediately following the report. Investors interpreted the data as a signal that the Federal Reserve may cut interest rates more swiftly in early 2026, creating a "risk-on" environment for tech and AI-related stocks.
Bitcoin (BTC): Reaction was muted compared to traditional markets. While volatility spiked during the release, with BTC swinging between $86,000 and $90,000, it largely remained range-bound below the $90,000 resistance level. Some analysts view cooling inflation as a long-term bullish driver for Bitcoin's "digital gold" narrative, but short-term price action has been dampened by thin year-end liquidity.
Altcoins: Generally underperformed Bitcoin in the wake of the report. The broader crypto market remains under pressure as investors favor "flight-to-quality" assets like gold, which hit new record highs following the CPI release.
The next CPI report for December 2025 is scheduled for release on Tuesday, January 13, 2026.
Buy Bitcoin >>
