The leading cryptocurrency Bitcoin (BTC) has been on a bumpy path lately and is having a hard time breaking above $60,000 and holding on to it.
Released Data
Today, critical inflation data that the FED attaches importance to in its interest rate decision was announced. Here is the disclosed data: Consumer Price Index Annual: Announced: 2.5% – Expected: 2.5% – Previous: 2.9% Consumer Price Index Monthly: Announced: 0.2% – Expected: 0.2% – Previous: 0.2% Core Consumer Price Index Annual: Announced: 3.2% – Expected: 3.2% – Previous: 3.2% Core Consumer Price Index Monthly: Announced: 0.3%– Expected: 0.2%– Previous: 0.2%
Significance of the Consumer Price Index
The consumer price index is an important variable used to measure consumer purchasing trends and U.S. inflation changes. A higher than expected value means positive/bullish for the USD, a lower than expected value means negative/bearish for the USD.
Market First Reaction
The initial reaction of Bitcoin and the dollar to the inflation data was as follows:
The announced US inflation data has a significant impact on financial markets, including cryptocurrencies and traditional currency markets, and their future behavior will depend on how these markets respond to the new figures.
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