- Bitcoin (BTC) has seen a surge following the announcement of the US Consumer Price Index (CPI) meeting expectations.
- The US inflation for April was announced at 3.4% on an annual basis, matching the forecast. This led to a downward movement in the US dollar index (DXY) and a rise of nearly $1,800 in Bitcoin.
- The volatility affected the entire crypto market, with Ethereum (ETH) reaching up to $2,960.
Bitcoin experiences a surge following the announcement of the US CPI meeting expectations, affecting the entire crypto market.
Bitcoin Rises Following US CPI Announcement
Bitcoin, which was trading at around $62,400 just before the US inflation announcement, rose to $64,200 following the release of the data. The volatility in Bitcoin’s price was not isolated, as it affected the entire cryptocurrency market. Ethereum, the second-largest cryptocurrency by market capitalization, also saw a significant increase, reaching up to $2,960. According to CoinGecko data, Bitcoin is currently trading at around $63,760, while Ethereum is trading at around $2,948.
US Inflation and Its Impact on Cryptocurrencies
In the US, inflation had increased consecutively in June and July of last year, but then started to decline. It is thought that the Federal Reserve (FED) will make at least one 25 basis point cut in interest rates this year if there is not a significant increase in the inflation rate. The correlation between inflation and the price of cryptocurrencies like Bitcoin and Ethereum is a topic of interest for many investors. The recent surge in Bitcoin following the announcement of the US CPI meeting expectations is a testament to this relationship.
Future Outlook
As the global economy continues to grapple with the effects of the pandemic, the movements of the US inflation rate and its impact on the cryptocurrency market will be closely watched. The correlation between inflation and the price of cryptocurrencies could potentially provide investors with valuable insights for their investment strategies.
Conclusion
The announcement of the US CPI meeting expectations has led to a surge in Bitcoin, affecting the entire crypto market. The correlation between inflation and the price of cryptocurrencies is a topic of interest for many investors, and future movements in the US inflation rate could provide valuable insights for investment strategies.
