Sunday , December 22 2024
Home / Bitcoin (BTC) / Bitcoin Jumps $500 as US CPI Clocks in at 5% for March 2023

Bitcoin Jumps $500 as US CPI Clocks in at 5% for March 2023

Summary:
The initial expectations for the CPI numbers for March showed a decline in the inflation rates to 5.2%. In reality, the third month of the year saw an increase of 5%, shown by the Consumer Price Index. At the same time, the core CPI, which excludes more volatile niches such as food and energy, was expected to be somewhere between 5.5% and 5.6%. The Core CPI has actually matched the expectations, standing at 5.6%. The CPI for February stood at 6%, which was a decline compared to January. However, dropping by another 1% had an immediate effect on bitcoin’s price. The cryptocurrency skyrocketed by almost 0 in minutes after the numbers went out. Bitcoin traded calmly at ,000, as reported earlier, but jumped to ,500. BTCUSD. Source: TradinViewBeing considered a risk-on

Topics:
Jordan Lyanchev considers the following as important: , , , , , ,

This could be interesting, too:

Wayne Jones writes Chinese Auto Dealer Dives Into Bitcoin Mining With 6M Investment

CryptoVizArt writes Bitcoin Price Analysis: Is BTC In Danger of Falling to ,000 Soon?

Chayanika Deka writes wBTC Delisting Stands: BiT Global’s Legal Challenge Fails

Jordan Lyanchev writes Liquidations Skyrocket Beyond Billion as BTC, Altcoins Bleed Out Heavily Again

The initial expectations for the CPI numbers for March showed a decline in the inflation rates to 5.2%.

In reality, the third month of the year saw an increase of 5%, shown by the Consumer Price Index.

  • At the same time, the core CPI, which excludes more volatile niches such as food and energy, was expected to be somewhere between 5.5% and 5.6%.
  • The Core CPI has actually matched the expectations, standing at 5.6%.
  • The CPI for February stood at 6%, which was a decline compared to January. However, dropping by another 1% had an immediate effect on bitcoin’s price.
  • The cryptocurrency skyrocketed by almost $500 in minutes after the numbers went out. Bitcoin traded calmly at $30,000, as reported earlier, but jumped to $30,500.
BTCUSD. Source: TradinView
BTCUSD. Source: TradinView
  • Being considered a risk-on asset, BTC’s short-term price performance is strongly correlated to the CPI data.
  • This is because the inflation numbers determine the monetary policy undertaken by the US Federal Reserve and whether it will continue spiking the key interest rates.
  • The declining inflation YoY shows that the Fed’s actions have an effect and the central bank could start reversing its strategy soon.

Leave a Reply

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