December inflation data shows prices holding at 2.7% year-over-year—a critical data point for crypto markets watching Fed policy shifts. With inflation cooling but not collapsing, the debate around future rate adjustments intensifies. This steadiness matters because it influences capital allocation decisions. Risk-on assets like digital currencies remain sensitive to macroeconomic signals. Traders are parsing whether the Fed might pause its current stance or pivot again. The broader picture: moderate inflation readings keep market expectations in flux, affecting both institutional and retail positioning in crypto assets. Watch how this shapes the next cycle of market momentum.