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Bitcoin Approaches $100,000 As CPI Data Indicates Hints of Moderation.

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Photo: Dado Ruvic

(VOR News) – The Consumer Price Index (CPI) data is showing Bitcoin unexpectedly robust levels, which is driving the price of Bitcoin closer to the $100,000 threshold and bringing it to levels that are more reachable.

This is fostering hope in the financial markets. More than two percent of its value has increased over the course of twenty-four hours.

Instantaneously following the dissemination of the data, the digital asset that possesses the highest market capitalization experienced a rise of $2,000, reaching an intraday high of $99,400 dollars. Despite the fact that it is currently experiencing an ascent.

Bitcoin’s $99,000 valuation shows it’s consolidating.

The increase in the Consumer Price Index (CPI) for the month of December was 0.4%, which was higher than the 0.3% increase that was anticipated for the month of November.

The Bitcoin Consumer Price Index (CPI) came in at 2.9%, which was in line with what was anticipated but represented an increase above the figure of 2.7% that was recorded the previous year.

The core consumer price index showed a month-over-month increase of 0.2%, which is in line with projections and shows a drop from the 0.3% increase that was reported in November. The only exceptions to this trend were the fluctuating prices of food and energy.

The core Consumer Price Index (CPI) fell to 3.2%, which is a decrease from the rate of 3.3% that was published for the previous month. Contrary to what was anticipated, this speed was less rapid.

It is a source of frustration for officials since, despite the fact that headline inflation is decreasing at a faster rate, the core inflation rate, which is an indicator that legislators constantly monitor, continues to be higher than three percent.

There are indications that market participants anticipate an early easing of monetary policy, which has contributed to an improvement in the mentality of the market. After the release of the Consumer Price Index (CPI), the dollar index (DXY), which is sometimes inversely connected with Bitcoin, had a loss of 0.5%, reaching 108.5.

This decline takes place within the context of the consumer price index. This is a huge reversal, and it comes after the index reached its highest point of 110 on Monday, which was led by good figures from the labor sector.

Traditional markets and bitcoin markets both experienced gains as a result of the weakening of the dollar.

Initially, Bitcoin drove the markets up 1.4% and 1.7%.

Following several weeks of trading that was characterized by rangebound behavior, the price of Bitcoin has increased in the cryptocurrency market as a result of factors such as macroeconomic data and projections regarding monetary policy.

As a direct result of the hawkish comments made by Federal Reserve Chair Jerome Powell in December, the value of the asset has dropped below $100,000. In spite of this, the report on the Consumer Price Index that was presented today generated a tremendous amount of excitement around the possibility of interest rate reductions this year.

Initially, the expectations that interest rates would be lower this year were entirely dashed by the robust economic and inflationary indicators.

Based on the data provided by the CME FedView Tool, the probability of a rate reduction occurring at the meeting on June 18 is 44.5%. In September, the probability was measured at 39%;

This represents an increase from that. When it comes to the number of people who show up to sessions, the probability of those numbers falling more than thirty percent is consistently lower.

Bitcoin had previously recovered from an unexpected drop below $90,000 earlier in the week. The numbers for December that were issued by the Producer Price Index (PPI) on Tuesday gave Bitcoin further momentum for recovery. Inflation rates that were lower than anticipated were reported by the Consumer Price Index (PPI).

SOURCE: CB

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Salman Ahmad is a seasoned freelance writer who contributes insightful articles to VORNews. With years of experience in journalism, he possesses a knack for crafting compelling narratives that resonate with readers. Salman's writing style strikes a balance between depth and accessibility, allowing him to tackle complex topics while maintaining clarity.

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