Crypto Market Rallies as U.S CPI For December Falls to 6.5%

  • Inflation as measured by the Consumer Price Index was 7.10% in November.
  • The current Bitcoin price is $18082.71, up 5 percent in the previous 24 hours.

The Consumer Price Index for December showed a gain that was in line with expectations, at 6.5%. The December CPI numbers were recently issued by the US Bureau of Labor Statistics. Minutes before the report was released, the cryptocurrency market was modestly positive, with most assets trading in the green. Inflation as measured by the Consumer Price Index was 7.10% in November.

According to CMC, the current Bitcoin price is $18082.71, up 5 percent in the previous 24 hours. After originally exhibiting a price surge immediately after the data release, BTC price moved a little downwards but continued the momentum later.

Similarly, the CPI inflation data release resulted in a 4.61 percent rise in the price of Ethereum (ETH). The stock market, however, is optimistic due to reports of decelerating inflation. The Nasdaq Composite Index has risen 1.76 percent today as a result of this news.

Decline in Inflation Good For Economy

One of the most important economic indicators is the Consumer Price Index, which tracks average consumer price changes. When deciding on an interest rate hike, the US Federal Reserve consults the index data. For several reasons, a decline in inflation is good for the economy.

Inflation in the United States is at its lowest rate since October 2021, rising by just 6.50% year over year. The crypto market’s first reaction to price decrease in response to the CPI statistics was understandable, but the slowing of inflation may ultimately be good for investors.

When inflation is reduced, crypto traders might save money on their daily living expenditures. This implies traders may put aside funds for long-term investments, such as cryptocurrency.

An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.