Bitcoin Eyes $18K Following Good US Inflation Report
11 November 2022 - 6:31AM
NEWSBTC
The crypto market and Bitcoin trend over the past few days have
been entirely unexpected. The market is feeling the heat from the
bears as most of the crypto assets took to the south. Moreover, the
FTX crisis has increasingly brought a different contagious negative
performance in the space. Related Reading: Bitcoin On-Chain Data:
Selling From Whales Holding 1k+ BTC Behind Crash Bitcoin had a
complicated swing as the token dropped from its critical level of
$20K. The price of BTC has dipped to around $16K region. The entire
situation and unfolding of events are creating more fear and doubts
for most participants in the crypto industry. However, the primary
crypto asset has shown signs of revival during some minutes in
today’s trading hours. The US Bureau of Labor Statistics has just
released the latest report on the inflation rate in the country.
Unfortunately, the data for the Consumer Price Index for October is
out. CPI Data Beats Expectations, Bitcoin Stays In Recovery Mode
According to the data, CPI for October reads 7.7%, indicating an
increase of 0.4% through its seasonal adjustment. This latest
report proves to be better than expected. Hence, Bitcoin reacted
positively within some minutes after the news was out. Due to the
current flow in the general economy, most expectations for the CPI
report were around 8%. But the reality of the value has brought a
positive change in the crypto market. According to data, the price
of BTC suddenly surged to $17,800 before going down again. The
token is currently trading between $17,278 and $17,400. Compared
with the September CPI data of 8.2%, this latest CPI report proves
excellent news. The core CPI data rose by 0.3% without food and
energy in October. This trend is slower than the expected 0.5%, a
drop from 0.6% in September. The yearly comparison shows that the
core CPI surged by 6.3% in October, below the expected 6.5% rise
and dropping from 6.6% in September. Implications of CPI Reports
The CPI reports are one of the measures the US Federal Reserve uses
to determine the inflation rate in the country. Therefore, this
October’s data is an essential report for the Fed before the usual
Federal Open Market Committee (FMOC). The year’s next and final
FOMC meeting has been slated on December 14-15. The FOMC will
likely hike its benchmark for Fed Funds rate again at the meeting.
If it happens, it will mark the 7th time such a rate increase
occurred in 2022. The Fed has been taking a hawkish stance in
controlling inflation. It has been increasing the interest rates by
75bps in some months due to higher CPI data. Related Reading:
Bitcoin Bear Markets Compared: How Much Longer Till The Bottom? |
BTCUSD November 9, 2022 The crypto market has been showing a
correlation with macroeconomic factors. So, reports on CPI data
usually affect the prices of crypto assets, as has just occurred.
Also, the excellent CPI data has created a spike in equity futures
as they expect the Fed’s tightening measures to relax. featured
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