December's CPI report just dropped, and it's delivering mixed signals for crypto traders watching macro trends. Headline inflation hit 2.7% year-over-year—exactly what Wall Street was betting on. Core CPI came in at 2.6%, actually beating expectations that had priced in 2.7%. Here's the kicker though: both measures flatlined month-over-month, meaning inflation basically went nowhere in December.

What does this mean for your portfolio? The Fed's January meeting is shaping up to be a holding pattern. Rate cuts are off the table for now. With inflation still sticky above the Fed's comfort zone and employment showing resilience, don't expect any dovish surprises from Powell & Co. this cycle.

For crypto markets, this is a crucial data point. Sticky inflation keeps real yields elevated, which typically pressures risk assets including Bitcoin and altcoins. That said, the fact that headline and core CPI didn't accelerate suggests stagflation fears aren't spiraling—there's still a path to normalization if momentum continues cooling.