Crypto News
1 year ago

Bitcoin Drops Toward $21.5K on 6.4% US CPI Numbers for January

Jordan Lyanchev Feb 14, 2023 13:37
The initial estimations showed a brighter picture suggesting that the YoY inflation could be at 6.2%.

The United States Department of Labor outlined the inflation numbers for the first month of 2023, which were slightly different that the expectations.

Bitcoin reacted with an immediate price drop that drove it from $21,900 to $21,600 in minutes.

  • The US government announced the latest CPI numbers on February 14, indicating that the Consumer Price Index for All Urban Consumers had risen by 6.4% year-over-year and 0.5% MoM.
  • The core CPI, which excludes food and energy, is up by 5.6% compared to January 2022. On a monthly scale, the metric has increased by 0.4%.
  • The difference between the two comes from the fact that food prices have soared the most in the States in January – 10.1%, followed by the energy sector – 8.7%.
  • Since the actual numbers for January are slightly higher than the expectations, BTC reacted with a sudden price drop. In a matter of minutes, the cryptocurrency fell from $21,900 to under $21,600 before recovering a few hundred dollars.
  • CryptoPotato reported earlier that the asset stood calm below $22,000, but investors had to be wary of potential volatility due to the CPI announcement.
Share This Article
Jordan Lyanchev

Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017 and now serves as CryptoPotato's Assistant Editor-in-Chief. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn