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Bitcoin sees volatility in the CPI as lower inflation sends BTC price to $18K

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bitcoin (BTC) hit a one-month high on December 13 as US inflation data sent a wave of optimism through the markets.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Bitcoin price rebound in the United States. Inflation is slowing

information from Cointelegraph Markets Pro And the TradingView BTC/USD is showing reaching $18,105 on Bitstamp after the Consumer Price Index (CPI) for November came in below expectations.

The reading, dubbed the “most important” of the year, even beat analysts’ expectations of slowing inflation.

November CPI was 7.1% yoy, compared to expectations of 7.3%. On a monthly basis it was 0.1% vs. 0.3% expected.

“The index of all items increased by 7.1 percent for the 12 months ending in November; this was the smallest increase in the 12 months since the period ending in December 2021.” press release has been confirmed.

Bitcoin traders and analysts were unsurprisingly buoyed by the injection of positivity that resulted.

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“A massive short squeeze is on its way into the market,” popular analytics source Game of Trades says answered In part from a tweet before the opening of Wall Street.

more governor The reaction came from Crypto’s Il Capo, who told followers that he still has no plans to take BTC exposure despite the gains.

“The consumer price index is better than expected, but it is still very high,” he said.

“The price is testing a massive resistance area here and forming a lower top. I’m still 100% out of the market.”

Equally cautious was Viggo, an analyst at crypto research firm Reflexivity Research, who warned of a “deflationary panic” that was yet to come.

“We are now entering the Goldilocks phase of inflation,” he said announce.

“Cpi is falling faster than expected until it turns into a deflationary panic in Q1 2023. Final bottom around then then bullish through 2024. Enjoy the long gain but don’t miss the forest by the trees.”

As Cointelegraph mentionedThe week is set to have more than just CPI numbers, as the US Federal Reserve is set to make a decision on raising interest rates in December and Chairman Jerome Powell will speak on December 15th.

According to CME Group FedWatch toolThe consensus was for a 50bp lower rise today, with odds just under 80% versus 75% at the start of the week.

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Federal goal rate odds chart. Source: CME Group

Binance’s concerns are already fading away

Meanwhile, BTC/USD has been performing well even before the CPI release, showing no hint of cold feet in the face of New panic During events involving the largest crypto exchange Binance.

Related: SBF ‘Didn’t Like’ Decentralized Bitcoin – Cathy Wood, CEO of ARK Invest

Dubbed a “FUD,” CEO Changpeng Zhao, the concerns that surfaced in Reuters and on social media nonetheless led to a mass exodus of users’ funds, which totaled more than $500 million in BTC alone over the course of 24 hours.

In other events linked to the FTX debacle, the exchange’s former CEO, Sam Bankman-Fred, was arrested in the Bahamas that day, with the US Securities and Exchange Commission accuse him With defrauding FTX users.

The views, ideas and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.