Bitcoin price reacts violently to news from the US. The US Consumer Price Index (CPI) was 8.5% in July. This is lower than the estimated 8.7% we saw earlier.
Bitcoin responded positively to the news. The graph below clearly shows the spike shortly after the news broke.
Bitcoin is 12% higher than it was a month ago. At the same time, the price point of around $23,000 is still not a cause for celebration for many investors. The price in 2021 was still priced at $69,000.
The news has ramifications for other markets as well. All three major U.S. stock index futures rose in a straight line. Nasdaq futures were up more than 2% and S&P 500 futures were up 1.5%.
The US CPI is calculated by the Bureau of Labor Statistics (BLS). They take an average set of goods and services. This means that services and products in this index have increased by an average of 8.5% for consumers.
Higher expenses mean lower disposable income for the average American. If you’re having trouble reaching your goal, saving in Bitcoin isn’t your first thought. The price crash earlier this year didn’t help either. The price of BTC is participating in the global tragedy.
The US jobs report came out last week, showing that unemployment in the US fell by 0.1 percent to 3.5 percent. That would give the FED room to pursue even tighter monetary policy. This, coupled with current inflation figures, creates uncertain times in the financial markets.
The US central bank plays a major role in global markets. The dollar is still the dominant currency.
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