Bitcoin Reacts Mixed to Inflation Data: A Crucial Day Ahead

Bitcoin America, BTC USA

The price of Bitcoin, which had been stagnant for several days around a level of $26,000, immediately rebounded after the announcement of the US inflation data, also known as the Consumer Price Index (CPI). In this article you can read everything you need to know about the important inflation figures.

CPI and Core CPI Figures

Overall expectations for CPI and Core CPI numbers were 4.1% and 5.2% respectively. However, the actual figures, published on June 13, showed a slight deviation from these projections. The annual CPI for the month of May came in at 4%, which was slightly lower than the expected 4.1%. On the other hand, the Core CPI, which excludes more volatile sectors such as food and energy, turned out to be higher than expected at 5.3% instead of the predicted 5.2%.

Bitcoin price reacts

Bitcoin, the largest and most prominent cryptocurrency, reacted to these figures with a short price increase. Bitcoin’s value skyrocketed from $26,000 in minutes to a three-day high of just above $26,400. However, the coin lost virtually all of its gains in the minutes that followed.

Bitcoin is trading around $26,040 at the time of writing, posting a small 24-hour gain of 0.5%.

Tomorrow will be an important day

Falling CPI data may indicate that the US Federal Reserve (Fed) may review its monetary policy of raising interest rates. This is generally seen as a bullish signal for risky assets like Bitcoin.

It is worth mentioning that tomorrow will be an extremely important day in this context. The Federal Reserve will then announce whether or not it decides to raise interest rates. The financial markets, and the Bitcoin market in particular, will no doubt be watching closely as this situation unfolds. The coming hours and days will therefore be very interesting for investors and market followers worldwide.

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The post Bitcoin Reacts Mixed to Inflation Data: A Crucial Day Ahead appeared first on Newsbit.

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