Bitcoin climbed slightly on Wednesday, steadying from a recent price rout as traders shied away from big bets ahead of key U.S. inflation data. Consumer price index (CPI) accelerated slightly in November, in line with estimates. 

The world’s largest cryptocurrency remained squarely within a $90,000 to $100,000 trading range established over the past few weeks, amid cooling optimism over friendly regulations under incoming President Donald Trump. 

Broader crypto prices jumped on the CPI report, which boosted the odds of an interest rate cut later this month. 

November CPI rises 0.3% sequentially, in line with estimates

Consumer prices accelerated on an annual basis in November, underscoring that inflation remains a concern for both households and policymakers.

According to data from the Bureau of Labor Statistics released Wednesday, the consumer price index (CPI) rose 2.7% over the past year, following a 0.3% monthly increase. The annual inflation rate was slightly higher than October’s 2.6%.

Excluding volatile food and energy prices, core CPI climbed 3.3% year-over-year, with a 0.3% monthly gain. The annual core inflation figure remained steady compared to the previous month.

All figures matched expectations from the Dow Jones consensus.

The data strengthened market expectations for a Federal Reserve rate cut, with traders pricing in a 99% probability, according to the CME Group’s FedWatch tool. The likelihood of a rate reduction in January also rose to approximately 23%.

Recent signs of inflation stickiness have prompted uncertainty in the markets over the long-term outlook for interest rates. Expansionary and protectionist policies under Trump are also expected to underpin inflation, keeping rates higher in the long term.

High rates bode poorly for speculative assets such as crypto, given that they limit the amount of liquidity available for speculation. 

MicroStrategy could be added to Nasdaq 100 

MicroStrategy Incorporated (NASDAQ:MSTR)- the biggest corporate holder of Bitcoin- rose on Tuesday amid speculation that the stock could be added to the Nasdaq 100- a move that could spur further upside in the stock.

Microstrategy surged about 450% in value this year as its Bitcoin bet paid off, with the company continuing to issue more debt and buy more Bitcoin.

Bloomberg analyst Eric Balchunas said the firm’s addition to the Nasdaq 100 could invite net buying of at least $2.1 billion Microstrategy shares by exchange-traded funds to gain exposure. 

Crypto price today: altcoins jump after CPI data

Among broader crypto prices, most major altcoins trading higher after new inflation data increased the likelihood of an interest rate cut at the Fed policy meeting this month. 

World no.2 crypto Ether added 1.5% to $3,736.50. XRP jumped more than 9% to $2.38.

Solana rose over 4%, while Cardano and Polygon rose around 7% each. Among meme tokens, Dogecoin added 1%.