Inflation in the US is currently at 3% yoy.
Bitcoin reacted quickly to the uptrend after the announcement, but then lost value.
According to the official report released this morning, the United States price index (CPI) has risen by 3% over the past 12 months. With this result, it has been a year since inflation in the US started to ease, impacting markets including Bitcoin (BTC).
It’s about twelfth Year-on-year inflation declines in the United States for months straightafter the peak of 9.1% registered in July 2022. This puts the country close to the 2% target expected by the Federal Reserve (Fed).
This result beat market expectations of an inflation rate of 3.1%. Possibly for this reason Bitcoin price reacted to the surge, albeit very subdued, and failed to hold.
As soon as the inflation report was released, Bitcoin saw a rapid surge to $31,100, its highest level in a week. However, the rise subsequently leveled off and returned to the $30,800 area.
As CriptoNoticias reports, Bitcoin has remained in the range between 30,000 and 31,000 US dollars for a little over three weeks. And despite what some believed The inflation data was not the trigger for the cryptocurrency to surpass this price level.
If inflation weakens, it may cause the Federal Reserve to cut interest rates. The tends to push up the price of volatile assets – like bitcoin. because the market will be looking for investment vehicles with higher return potential.