Bitcoin Price Drops to 9-Day Low Following Higher US CPI Data
The U.S. Bureau of Labor Statistics reported a January CPI increase of 3%, exceeding expectations and causing Bitcoin’s price to drop by nearly $2,000. The Core CPI rose to 3.3% against an estimate of 3.1%, signaling higher inflation. Following this announcement, Bitcoin’s price fell from $96,500 to around $94,500, the lowest level since early February.
The United States Bureau of Labor Statistics has unveiled the Consumer Price Index (CPI) data for January, revealing a year-over-year increase of 3%. This figure surpassed expectations and led to an immediate reaction in the Bitcoin market, resulting in a price drop of approximately $2,000 within minutes.
Prior data for December had suggested a more optimistic view regarding inflation rates in the United States. However, the January numbers contradicted this perspective, with measured inflation data indicating higher figures than anticipated. The Core CPI, which excludes volatile categories such as food and energy, rose by 3.3%, while estimates were originally set at 3.1%. Likewise, the overall CPI increased to 3% year-over-year, exceeding expectations of 2.9%.
Following the CPI announcement, Bitcoin’s price experienced a sharp decline, falling from approximately $96,500 to around $94,500, marking its lowest point since an earlier crash in February when it briefly dipped below $92,000. This price action highlights the direct correlation between economic indicators and cryptocurrency valuations, particularly in response to inflationary pressures.
In summary, the recent CPI data released by the U.S. Bureau of Labor Statistics has shown a higher-than-expected inflation rate, resulting in a notable decline in Bitcoin’s price. The market reacted swiftly, demonstrating the sensitivity of cryptocurrencies to macroeconomic indicators. This situation emphasizes the importance of following economic trends for more informed investment decisions in the cryptocurrency market.
Original Source: cryptopotato.com
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