US CPI Cools, Fed Drama, Japan Stocks Surge, and Bitcoin Jumps: PALvatar Market Recap, January 13 2025 - Real Vision Daily Briefing Recap

Podcast: Real Vision Daily Briefing

Published: 2026-01-13

Duration: 7 minutes

Summary

US inflation data came in softer than expected, boosting equities and hopes for Fed rate cuts, while the Nikkei hit record highs and Bitcoin surged past $92,000.

What Happened

US inflation data for December showed the Consumer Price Index (CPI) rising at 2.7% annually, with core CPI at 2.6%, both coming in softer than expected. This spurred gains in US stocks as investors anticipated potential Fed rate cuts. However, the episode also touched on the ongoing criminal probe into Fed Chair Jerome Powell, who has received support from former Fed chairs and central bankers.

Major banks like JPMorgan Chase kicked off earnings season, reporting results that exceeded Wall Street expectations, though profits fell due to a one-off charge linked to its Apple credit card acquisition. Other banks like Citigroup and Wells Fargo are expected to release their earnings soon.

Global markets displayed mixed reactions, with Japan's Nikkei index surging 3.3% to an all-time high. This was attributed to reports of Prime Minister Sanei Takechi's plans for a snap election and a stronger-than-expected current account surplus for Japan.

In Europe, France's budget deficit narrowed due to improved revenues, while the UK retail sector struggled under inflationary pressures. These regional developments highlight economic contrasts within Europe.

Bitcoin's price jumped to nearly $92,500, driven by institutional buying, including a major purchase by Strategy. The episode noted this as the largest Bitcoin acquisition since July, alongside discussions about regulatory changes and an upcoming IPO by BitGo.

The crypto space also saw regulatory discussions, such as the U.S. Senate Banking Committee's draft market structure bill, which proposes a ban on stablecoin rewards for idle holdings but allows activity-linked incentives.

A notable cautionary tale in the crypto sector involved former NYC Mayor Eric Adams, accused of a $3 million rug pull with his NYC token project, illustrating the risks in new crypto ventures.

Key Insights

• The US Consumer Price Index (CPI) for December rose by 2.7% annually, with the core CPI at 2.6%, both softer than expected, which led to gains in US stocks as investors anticipated potential Federal Reserve rate cuts.
• Japan's Nikkei index surged 3.3% to an all-time high, driven by reports of Prime Minister Sanei Takechi's plans for a snap election and a stronger-than-expected current account surplus.
• Bitcoin's price surged to nearly $92,500, fueled by institutional buying, including a significant acquisition by Strategy, marking the largest Bitcoin purchase since July.
• The U.S. Senate Banking Committee's draft market structure bill proposes a ban on stablecoin rewards for idle holdings while allowing incentives linked to activity, indicating potential regulatory shifts in the crypto space.