BTC had stalled at around $26,000 for the past few days, but the CPI announcement changed that.
The general estimations for the CPI and Core CPI numbers were at 4.1% and 5.2%, both of which were slightly different in reality.
As a result, bitcoin reacted with an immediate price increase that drove it north by several hundred dollars in minutes.
The United States announced the inflation rates for the month of May on June 13, indicating a year-over-year increase in the Consumer Price Index of 4%, which was slightly lower than the 4.1% expected.
The core CPI, which excludes more volatile sectors like food and energy, has jumped by 5.3%, a bit higher than the estimations of 5.2%.
The primary cryptocurrency reacted with an immediate brief price increase that pumped it from $26,200 to a three-day high of just over $26,400. However, the asset lost almost all traction in the following minutes.
It’s worth noting that BTC used to be a lot more volatile during previous CPI announcements, with some taking it on massive four-digit rides.
The declining CPI numbers could mean that the US Fed will finally pivot from its monetary policy of hiking the interest rates, which is regarded as a bullish sign for risk-on assets like BTC.
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
