Bitcoin Price Pumps After Low CPI – Bitcoin Magazine


The price of bitcoin ($BTC) has jumped ~5% to nearly $18,000 after the most recent Consumer Price Index reading from the U.S. Bureau of Labor Statistics reflected a lower number than the 7.3% projected by economists.

At 7.1%, CPI has now reached its lowest levels since December of 2021, which was the highest reported month that year. After two years of sustained inflation as a result of the Federal Reserve’s COVID-19 stimulus, the Fed was forced to aggressively hike rates in order to prevent runaway inflation. The latest CPI print confirms their aggressive actions have had an impact, although food and energy in particular maintain high levels of inflation (10.6% and 13.1% respectively).

Bitcoin, an asset often viewed as risk-on in traditional markets, benefits from low rate environments. The latest CPI print reinforces the narrative that the Fed will now shift to a slow down in its rate hikes, which could explain the current pump in bitcoin’s price. Bitcoin began its descent from the mid-$40,000 range in April of 2022 and has been hovering below $20,000 since June of this year. Contagion from the failure of the Three Arrows Capital hedge fund ultimately sparked this fall, which has only since been exacerbated by the collapse of industry titan FTX.

#Bitcoin #Price #Pumps #CPI #Bitcoin #Magazine


Related Posts

South Korea to examine crypto staking services following the Kraken case

[ad_1] As reported by a local publication on Feb. 15, Korean financial authorities are looking into the staking services market. However, as the unnamed official specified to…

Elon Musk Hints At New Twitter CEO At End-2023, Causes FLOKI To Skyrocket 45%

[ad_1] Elon Musk announced in December of last year that he will step down as CEO of Twitter once a replacement is found, but will continue to…

Bitcoin eyeing ‘next big move’ which could see $19K retest — analyst

[ad_1] Bitcoin (BTC) is headed to either $28,000 or $19,000 and this week could decide all, fresh analysis says. In Twitter comments on Feb. 15, popular trader…

Messari Analyst Reveals Why Polygon Is Set For Steady Growth

[ad_1] Through his tweet today, Messari analyst Tom Dunleavy singled out Polygon as a top-performing crypto asset and further described traits that set the cryptocurrency for further…

Sequoia Capital, Paradigm among VCs facing ‘tricky’ FTX investor lawsuit

[ad_1] Users of bankrupt crypto exchange FTX have reportedly taken aim at financiers who promoted the platform suggesting their efforts added an “air of legitimacy” to the…

Sen. Warren vows reintroduction of AML bill that extends to DAOs and DeFi

[ad_1] A bi-partisan anti-money laundering (AML) bill that covers “decentralized entities” such as decentralized finance (DeFi) protocols and DAOs will soon be reintroduced to Congress, according to…

Leave a Reply

Your email address will not be published. Required fields are marked *