Bitcoin Rises as CPI Beats Expectations
The latest Consumer Price Index (CPI) numbers in the United States for October have exceeded expectations, leading to a surge in the price of Bitcoin. Both the core and regular CPI showed higher figures than anticipated, causing BTC to gain over $400 in just a few minutes.
Lower-than-Expected Increase
The projected year-over-year CPI for October was estimated at 3.3%, with the core CPI, which excludes volatile sectors like food and energy, expected to stand at 4.1%. However, the actual increase was more modest, with the core CPI up by 3.2% and the regular CPI jumping by 4% compared to October 2022.
Positive Impact on BTC
Given that the CPI reflects inflation rates and potential strategies by the US central bank, the news had a positive impact on Bitcoin’s price. The cryptocurrency, which was trading at a multi-day low of $36,200, saw a rapid increase before and after the CPI announcement, reaching above $36,600.
Hot Take: Bitcoin’s Reaction to CPI Numbers
The unexpected surge in Bitcoin’s price following the release of higher-than-expected CPI numbers demonstrates the cryptocurrency’s sensitivity to macroeconomic indicators. As investors monitor inflation rates and central bank policies, Bitcoin continues to prove its status as a hedge against traditional financial systems.
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