Bitcoin price has surged above $26,000 after the U.S. Department of Labor released the latest consumer price index (CPI) numbers for February 2023.
The consumer price index (CPI) came in at 6.0%, the Bureau of Labor Statistics (BLS) data showed. That met economists’ expectations for the index. This while the CPI was still at 6.4% last month. In that respect, inflation is really starting to drop and that is good news for the bitcoin price.
What is the CPI?
CPI stands for the Consumer Price Index. It is a metric used to measure cost of living inflation. The Consumer Price Index is a series of prices used to determine how much a particular category of goods or services has risen or fallen over a given period. It is an index whose value is determined by comparing the average price increase of a basket of goods or services with the price increase of that same basket in a previous period.
The index is usually calculated by looking at a representative group of goods or services, such as food, energy, clothing, rent or loans. To compare these goods or services, the prices of these goods or services are compared over time. If the prices of all goods or services rise compared to a certain period of time, then the index also rises.
The Consumer Price Index is used to determine how much more people have to pay for their living expenses, or how much purchasing power they have. It is also used to determine inflation – the rate at which the prices of most goods and services have risen in a given period. Inflation is an important measure of economic growth and an important indicator of a country’s financial health.
The Bitcoin price is skyrocketing
Immediately after the release of the CPI data, the Bitcoin price shot up. The price rose from $24,600 to $26,100 in less than 30 minutes. Around 2:00 PM, the price even briefly peaked at $26,500.