After falling to $46,800 after the publication of the US CPI data, the price of bitcoin is now trading around $47,100. This represents a recovery from the previous drop.
In December 2023, the headline inflation rate increased to 3.4% year on year, which was higher than the 3.2% average that was anticipated.
The core consumer price index, on the other hand, dropped from 4.0% in November 2023 to 3.9%, which was more than the 3.8% that was anticipated.
Because of the growing inflation that is being monitored by the Consumer Price Index (CPI) in the United States, the price of bitcoin and the rest of the cryptocurrency market are expected to continue to enjoy the bullishness that has been seen over the previous few days. It is anticipated that the cryptocurrency market would see more inflows as a result of inflation exceeding estimates.
A higher-than-anticipated increase in the US Consumer Price Index
According to the statistics provided by the Consumer Price Index (CPI), the rate of inflation in the United States has increased to 3.4% from the beginning of the year in December 2023. In light of the fact that inflation in November 2023 was 3.1% on an annual basis, the assumption was somewhere around those numbers.
The rise in the core consumer price index (CPI) rate, which was reported by the Bureau of Labor Statistics (BLS) to have increased to 3.9% in December, was another indicator that highlighted the higher-than-expected inflation for the month of December. On an annual basis, it was higher than the anticipation of 3.8%, although it was somewhat lower than the 4.0% achieved in November.
From the beginning, the response of the US Dollar Index (DXY) was one that was very optimistic. On the 15-minute chart, the DXY had shown a gain of 0.36% at the time this article was written.
The cryptocurrency market, on the other hand, which was anticipated to have a positive response within the first few minutes after the data was released, did not function in accordance with the expectations.
The price of bitcoin has not changed.
At the time of this writing, the price of bitcoin is trading at $47,284, and it has scarcely moved since the data on the US consumer price index was released. As the number of people who are concerned about the value of fiat currency continues to rise, investors have a tendency to shift their assets away from fiat currency and toward alternative investment possibilities, such as cryptocurrencies.
On the other hand, despite the fact that the DXY had an increase this time around, Bitcoin remained relatively untouched, with a gain of just 0.58% on the 15-minute chart.
Furthermore, despite the fact that the first response was tepid, the optimistic indications from the wider market, which were supported by the acceptance of spot BTC ETF applications, might potentially push Bitcoin prices higher over the course of time. By the end of the following several trading sessions, it is anticipated that the cryptocurrency will have reached $49,999.
