Bitcoin Flirts With $44,000 As US Inflation Reaches 7% In December – Cryptovibes.com – Daily Cryptocurrency and FX News
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Based on the latest figures from the United States Bureau of labor statistics indicate that the Consumer Price Index (CPI) reached 7% in December 2021. The US CPI data showed that inflation is still on the rise gaining 0.5% month over month. In the wake of that news, Bitcoin (BTC) nearly reached $44,000.
The flagship crypto was volatile before that announcement, fluctuating massively over $2,000 from lows of $41,000 to $43,000 on January 12, 2022. Upon the announcement of these figures, the price continued to surge, touching $44,000 at some point.
Before the announcement, Twitter was blazing with speculation. Looking at a poll by @coinbureau, around 53% of his 580,000 followers said that they expected CPI to overshoot the consensus estimation of 7% inflation.
The macroeconomic specialist and crypto soothsayer Lyn Alden was already on the money.
A graph for inflation from the FED over the last 10 years is quite eye-opening. Since the pandemic ravaged the world, as marked in grey, the inflation level dropped before starting to rise speedily to 7%.
Nic Carter from Castle Island Ventures was more tongue-in-cheek before the data update. In expectation of more inflation surges, Carter joked that he was “looking forward to the inflationista cope if CPI prints double digits”.
The inflation rate has now become of major concern to developed nations throughout the world, but mostly for the US. 7% is the highest inflation rate since the 1980s. Traditional markets like the S&P kicked off the day in the green, gaining 0.36%, while bitcoin gained 2.8% in the morning’s action.
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