Silver Hits Record High Following Cooler US Core CPI Data

The U.S. Bureau of Labor Statistics (BLS) announced the Consumer Price Index (CPI) for December, revealing an inflation increase of 2.7% year-over-year. The core CPI, however, which is closely watched by the Federal Reserve, was particularly noteworthy.

Key Takeaways

The U.S. inflation rate rose by 2.7% in December 2025, matching expectations, while core CPI came in lower at 2.6%.
Bitcoin's price slightly increased, recovering to $92,000, while silver prices reached a record high of $87 per ounce.
Easing core inflation signals reduced fears of aggressive Fed interest rate hikes.
Market sentiment is currently weak, with traders uncertain about the impact of macroeconomic data on cryptocurrencies.

While Bitcoin experienced a slight uptick, silver prices surged to an all-time high, though some analysts remain doubtful about the influence of macroeconomic data on market trends.

December Inflation Report Shows 2.7% Annual Increase

The latest CPI report indicates that inflation rose at an annual rate of 2.7% in December 2025, aligning with market predictions. In contrast, the core CPI, which offers a clearer perspective on underlying inflation trends, fell short of expectations at 2.6%.

U.S. CPI: +2.7% Year-Over-Year (Expected: +2.7%)

U.S. Core CPI: +2.6% Year-Over-Year (Expected: +2.7%)

— Tree News (@TreeNewsFeed)

Following the release of the report, Bitcoin's price saw a modest increase, returning to the $92,000 mark. At the same time, the spot price of silver exceeded $87 per ounce for the first time, marking an over 21% increase year-to-date.

Bitcoin (BTC) and Silver (XAG) Price Performances. Source: TradingView
Silver spot prices hit a record high of $87, causing American Eagles to reach triple-digit prices across the board.
— zerohedge (@zerohedge)

This price surge was anticipated, as core inflation indicators suggested easing underlying inflation pressures. Consequently, concerns about aggressive interest rate hikes by the Fed diminished, which lowered real yields and enhanced liquidity—conditions that typically attract investors to riskier assets like Bitcoin.

Simultaneously, silver experienced advantageous conditions due to the same dynamics; the prospects of softer inflation and a potential halt in monetary tightening increased its attractiveness as a hedge, leading to parallel growth in both markets.

Interestingly, prior to the CPI report, the CME FedWatch Tool suggested that interest rate speculators believed there was a 95% chance the Fed would maintain interest rates in the 3.50% to 3.75% range. This probability remained steady after the report's release.

Fed Interest Rate Cut Probabilities Following CPI Release. Source: CME FedWatch Tool

This data may have implications for the Federal Reserve's interest rate decisions, with the next meeting scheduled for January 28, 2026.

“I think this demonstrates how mistaken Chairman Powell was when he implied that tariff-induced inflation would be the Fed’s primary concern—clearly, that is not the case, and tariffs have actually benefited our fiscal situation,” remarked Judy Shelton, a monetary economist.

Ahead of today’s CPI announcement, analysts at Greeks.live noted a significant drop in implied volatility (IV) for cryptocurrencies compared to the previous week.

This trend indicates that traders and investors largely believe macroeconomic data is no longer critically influencing the market. The early month rebound, which had previously led to a recovery in Skew, seems to have ended, with Skew reverting to holiday levels.

“Market sentiment remains fairly weak, with any positive momentum appearing fragile. Even minor concerns drive investors away,” stated analysts at Greeks.live.

This perspective aligns with comments from JPMorgan Chase CEO Jamie Dimon, who argued that markets are not giving adequate attention to macroeconomic or geopolitical threats.

Dimon: "Markets seem to underestimate potential dangers—including complex geopolitical conditions, the risk of persistent inflation, and elevated asset prices.”
— zerohedge (@zerohedge)