Bitcoin Price Boosts after the December 2021 Lowest CPI Report

Bitcoin has experienced a mini-rally after a low CPI read suggests rate hike slowing will happen soon.Author:BtcCaseyPublish date:Dec 13, 2022Bitcoin has experienced a mini-rally after a low CPI read suggests rate hike slowing will happen soon.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. The Federal Reserve’s COVID-19 stimulus had caused two years of sustained inflation. Therefore, the Fed was forced into raising rates aggressively to stop runaway inflation. Although inflation remains high at 10.6% and 13.1%, the latest CPI print shows that their aggressive actions have had an effect. Low rate environments are good for Bitcoin, which is often seen as a risky asset in traditional markets. The latest CPI print confirms that the Fed will slow down its rate hikes. This could explain the current bitcoin price surge. Bitcoin has been hovering around $20,000 since June this year after it began to fall from the mid-$40,000 mark in April 2022. This fall was triggered by contagion following the collapse of Three Arrows Capital’s hedge fund. It has been hovering below $20,000 since June of this year. Tagsterms:bitcoin priceinflationCPI

 

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