Bitcoin and Ethereum grew volatile on Thursday, whipsawing after a widely watched inflation gauge indicated that consumer prices rose less than expected last month.

The cryptocurrencies respectively popped as high as $89,000 and $2,980 before U.S. markets opened, as delayed data from the Bureau of Labor Statistics edged rate cut hopes higher. However, when the opening bell rang, Bitcoin and Ethereum wavered.

As of this writing, Bitcoin had fallen 1.6% over the past week to $88,399, according to CoinGecko. Ethereum was down 6.8%, at $2,957, over the same period of time. Still, both cryptocurrencies showed slight gains over the past day, rising more than 1% each.

The BLS report showed that consumer prices rose 2.7% in the 12 months through November, with inflation cooling to its slowest annual rate pace since July. Economists had penciled in a 3.1% annual increase for the period, according to Trading Economics.

So-called core inflation, which strips out volatile food and energy costs, increased 2.6% year-over-year, cooling to its lowest level since March 2021. Thursday’s inflation data was delayed by the government shutdown, which prompted cancellations for October.

Low inflation “leaves the door wide open” for further rate cuts in 2026, but it’s likely that expectations of accommodative monetary policy aren’t the only factor at play, Zach Pandl, head of research at asset manager Grayscale, told Decrypt.

“In late December, markets are often influenced by technical factors, including tax-related selling, so positive fundamental news may not show through in prices until the turn of the year,” he said.

Pandl added that lower interest rates, which tend to boost demand for riskier assets through cheaper borrowing, and bipartisan progress on a market structure bill for digital assets “could be a potent combination” for Ethereum in the coming quarter.

Earlier this week, President Donald Trump told Decrypt that he’s open to nominating Democrats to the SEC and CFTC. In recent weeks, key Senate Democrats have told Decrypt that the bill faces low passage odds without guarantees on Democrats’ inclusion in agency rulemaking.

On Thursday, traders penciled in a 26% chance that the Fed lowers its benchmark rate by a quarter of a percentage point at its next meeting, according to CME FedWatch. Following Thursday’s CPI surprise, those were up 2% over the past day.