US Inflation Data Released: How Did Inflation Affect Bitcoin, Gold, and the Dollar?

• The US inflation data for October performed above expectations. The Headline Consumer Price Index (CPI) remained unchanged despite an expected 0.1% increase on a monthly basis.
• The year-on-year Core CPI, however, fell slightly below expectations with a 4.0% increase, compared to the anticipated figure of 4.1% in September.
• With the release of the data, the price of Bitcoin rose by 0.70% to reach $36,670. Currently, BTC is trading at $36,550.

Critical inflation reports in the US have been released: All the details, expectations, and market impacts are covered on COINOTAG!

US Inflation Data Released

The US inflation data for October performed above expectations. The Headline Consumer Price Index (CPI) remained unchanged despite an expected 0.1% increase on a monthly basis. The Core rate, on the other hand, increased by 0.2%, surpassing the expected 0.3%.

Analyzing all the data, the October CPI remained unchanged on a monthly basis, defying the expected 0.1% increase and matching the 0.4% increase in September. The year-on-year CPI, with a 3.2% increase, aligned with expectations, showing a decline from September’s 3.7%.

The Core CPI, which excludes food and energy costs, increased by 0.2%, falling slightly below the expected 0.3% in October. The year-on-year Core CPI showed a 4.0% increase, slightly below expectations and a decrease from September’s 4.1%.

While the Headline CPI inflation has been declining for months, it continues to remain above the Federal Reserve’s 2% target. Moreover, the Core rate has remained above 4% for an extended period. Fed members have hinted that they might make another interest rate hike before finally ending the approximately 20-month-long tightening cycle.

Before this report, traders were pricing in an approximately 86% likelihood of the Fed keeping interest rates steady at the mid-December meeting, and according to CME FedWatch, the likelihood of continued pause at the January meeting was around 75%.

How Does It Affect Bitcoin, Dollar, and Gold?

Before the inflation reports were announced, the Bitcoin price was trading at $36,406. With the release of the data, the Bitcoin price increased by 0.70% to reach $36,670. Currently, BTC is trading at $36,550.

In contrast, the Dollar Index experienced a sharp decline, dropping by 0.70% to reach 104.784 levels. Currently, DXY is at 104.906 levels. Gold per ounce saw a 0.68% increase, reaching $1,959. Currently, Gold is trading at $1,954.