The December CPI data just landed, and here's what matters for crypto investors.

Headline inflation ticked up 2.7% year-over-year—right where forecasts predicted. But the softer core CPI reading of 2.6% (versus the expected 2.7%) is the plot twist. This gives the inflation cooling narrative more legs.

Why does this matter? It keeps the door open for potential Fed rate cuts, even if policymakers remain cautious about their next move. Crypto markets tend to perk up when the possibility of looser monetary policy is on the table. The gradual cooling trend suggests we're not seeing runaway inflation, which traditionally supports risk assets in the medium term.

Keep an eye on what the Fed signals next—that guidance will likely shape market sentiment more than the data itself.