The numbers we’re talking about (2.7% → 2.5%) are U.S. inflation (CPI) expectations — not Bitcoin’s own inflation rate.

📊 What actually happened with inflation

December U.S. inflation (CPI) was about 2.7% year-over-year.

Markets expected January to come in at around 2.5% y/y.

But when January CPI was released, it printed around 2.4% y/y, below expectations and below the 2.5% forecast. �

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🧠 What this means for Bitcoin and markets

Traders were watching for inflation to cool from 2.7% to around 2.5% as a sign that price pressures were easing.

Cooler inflation increases the odds the Federal Reserve can cut interest rates or stay dovish — and that generally boosts risk assets like Bitcoin.

Because the inflation print came in even softer (2.4%) than the 2.5% expectation, it reinforced that disinflation narrative, which helped Bitcoin price bounce and lifted sentiment. �

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❗Important Clarification

Bitcoin’s inflation rate — meaning the annual increase in the Bitcoin supply from mining — is very different (and structurally much lower), and isn’t what’s being quoted with “2.7% → 2.5%.” That number in media and markets refers to U.S. inflation data, not Bitcoin supply inflation.