Today in the United States new inflation figures published. The Consumer Price Inflation (CPI) was set at 8.5% in July. This is less than the 8.7% initially forecast by analysts and so the market reacted very positively. Among other bitcoin (BTC) and ethereum (ETH) made a nice jump.
CPI figures are not too bad
The fact that the CPI figures in July amount to 8.5% means that the annual inflation in the United States has fallen slightly since June. In June, the CPI was still 9.1%. This obviously suggests that skyrocketing inflation finally seems to be stabilizing. It also supports the arguments that we have already passed the ‘peak of inflation’.
According to an analyst at Fidelity, Chris Kuiper, the new CPI figures are hugely positive for digital assets such as bitcoin, which reports The Block. It could mean that the US central bank no longer sees the need to implement persistent policies to control inflation.
“Lower-than-expected inflationary pressures or falling inflation are likely to be seen as positive for digital assets, as it gives the Federal Reserve and other central banks a reason to pause or even reverse money tightening.”
The price of BTC and ETH
Every time new CPI figures are released in the United States, the prices of most cryptocurrencies react almost immediately. This time is no different. When the numbers were announced at exactly 2:30 PM today, the price of BTC in half an hour by about 4.5%. Soon the price of BTC was even more than $24,000.
Also the price of ETH made a serious jump following the positive news. The price of the second-largest cryptocurrency rose even faster than bitcoin. Over the same period, ETH rose nearly 8%!