US Reports Decline in Consumer Price Index (CPI)
The United States recently reported a significant decline in its annual Consumer Price Index (CPI) to 3.1%, resulting in a rise in the price of Bitcoin from a low of $40,000. This decline in the annual CPI is good news for crypto investors, signaling the potential for a bullish start to 2024.
November CPI Comes At 3.1% Yearly
In November, US inflation saw a slight decrease, with the main consumer price index (CPI) recording a 3.1% increase, a dip from October’s 3.2%. The core index, excluding energy and food prices, remained consistent at 4%. This data was released just before the Federal Reserve’s decision on interest rates, impacting market anticipations for potential rate cuts.
Bitcoin Price Gains Momentum From $40K
Following the announcement, Bitcoin’s price experienced a strong recovery, currently trading at $41.9K and setting its sights on surpassing the $45,000 threshold. With inflation trending downward, there’s increased anticipation for a reduction in interest rates, which could lead to an uptick in the crypto market as investors seek out higher yields in digital currencies.
Hot Take
The recent decline in the US annual Consumer Price Index (CPI) to 3.1% has had a positive impact on the price of Bitcoin and could potentially signal a bullish start to 2024 for the crypto market.
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