- XRP Response to January CPI Data
- “New normal”: 3% inflation target?
XRP attracted fresh buying interest after US inflation data came in softer than expected, with January CPI rising 0.2% month-over-month and annual inflation slowing to 2.4%. After an initial drop of 0.95%, the token recovered 3.76% and reached a high of $1,422 at the time of publication. With the CPI absorbed, attention now turns to the Fed’s March 4 Beige Book.
XRP Response to January CPI Data
According to the Bureau of Labor Statistics, the January CPI rose 0.2% month over month, below the consensus of 0.3%, while annual inflation slowed to 2.4%, marking one of the lowest readings in nearly five years. Core CPI met expectations at 0.3% month over month. On paper, this was a constructive impression for risk assets. In practice, the reaction was more complex.
XRP initially fell 0.95% immediately after the release, reflecting the algorithmic volatility typical of macro data. Buyers then intervened, lifting the token 2.29% from the local low. At the time of writing,
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“New normal”: 3% inflation target?
The most important takeaway for cryptocurrency investors is not the 2.4% figure itself, but the market’s reassessment of the Federal Reserve’s reaction function.
There is a growing institutional consensus that the Federal Reserve can tolerate a higher long-term inflation range (between 2.5% and 3.5%) rather than forcing a recession to reach the historic 2% target. If this “higher for longer” inflation framework gains traction, high beta assets like XRP and hard assets like gold may continue to see their prices rise as real rates adjust.
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Attention now turns to the Federal Reserve’s Beige Book on March 4. While not a formal rate-setting meeting, this report will provide the qualitative “on the ground” economic data needed to confirm whether January’s disinflationary trend is sustainable.
XRP remains in a sensitive macro consolidation phase. A sustained close above $1.42 would indicate a break from this news-driven volatility, while the $1.36 area remains the “must” floor for bulls.
