US CPI Surpasses Predictions With 3.4% Increase! BTC Price Aims To Break $48K
The post US CPI Surpasses Predictions With 3.4% Increase! BTC Price Aims To Break $48K appeared first on Coinpedia Fintech News
The US Consumer Price Index (CPI) has surged beyond expectations, clocking in a 3.4% increase. This development, exceeding the forecasts of many economists, signals a continuous inflationary pressure in the American economy. As a result of this news, Bitcoin price is breaking its consolidation near $46K and is heading toward the $48K mark.
US CPI Inflation Climbs To 3.4%
The US Bureau of Labor Statistics (BLS) announced on Thursday that inflation in the US, as gauged by the Consumer Price Index (CPI), rose to 3.4% annually in December. This increase, following November’s 3.1% rise, exceeded market projections of 3.2%. Additionally, on a month-to-month basis, the CPI witnessed a 0.3% uptick, surpassing the analyst expectations of a 0.2% rise.
The Core Consumer Price Index (CPI), which omits the more volatile food and energy prices, matched expectations with a 0.3% monthly increase. Over the year, the Core CPI saw a rise of 3.9%, a slight decrease from November’s 4%. The Bureau of Labor Statistics (BLS) highlighted in its press release that the shelter index continued its upward trajectory in December, accounting for more than half of the overall monthly increase in all items.
Energy prices saw a 0.4% hike during the month, driven by rises in both electricity and gasoline indexes, which more than compensated for the decline in the natural gas index. The food index recorded a 0.2% increase in December, consistent with the previous month’s rise. Within this category, the index for food at home edged up by 0.1%, while the index for food away from home experienced a slightly higher increase of 0.3%.
Following the release of the inflation data, the US Dollar strengthened against its counterparts. As of the latest update, the US Dollar Index had risen by 0.05% for the day, standing at 102.6.
Bitcoin Price Aims For $48K
Even though the SEC’s approval of a spot ETF did not provide the expected boost for Bitcoin’s price to reach $48,000, the increasing inflation rate is now driving demand for Bitcoin. This comes as various ETFs continue to be traded on exchanges. Bitcoin’s price experienced a significant increase, rising from a low of $46,800 to a high near $48,000.
Investors often turn to cryptocurrencies as a hedge against rising inflation. Traditional assets tend to lose value in times of high inflation, whereas assets like Bitcoin are deflationary nature due to their capped supply, resulting in a surge in buying demand.
Inflation, which had experienced a decline in the autumn, experienced a slight uptick in December. This increase highlights that it may be premature to declare an end to concerns following the most significant surge in consumer prices in forty years.
The primary drivers of this rise were fundamental living costs, including increases in rent, as well as higher prices for food and gasoline. Additionally, there was an unexpected rise in the prices of used cars.
Read More
US CPI Surpasses Predictions With 3.4% Increase! BTC Price Aims To Break $48K
The post US CPI Surpasses Predictions With 3.4% Increase! BTC Price Aims To Break $48K appeared first on Coinpedia Fintech News
The US Consumer Price Index (CPI) has surged beyond expectations, clocking in a 3.4% increase. This development, exceeding the forecasts of many economists, signals a continuous inflationary pressure in the American economy. As a result of this news, Bitcoin price is breaking its consolidation near $46K and is heading toward the $48K mark.
US CPI Inflation Climbs To 3.4%
The US Bureau of Labor Statistics (BLS) announced on Thursday that inflation in the US, as gauged by the Consumer Price Index (CPI), rose to 3.4% annually in December. This increase, following November’s 3.1% rise, exceeded market projections of 3.2%. Additionally, on a month-to-month basis, the CPI witnessed a 0.3% uptick, surpassing the analyst expectations of a 0.2% rise.
The Core Consumer Price Index (CPI), which omits the more volatile food and energy prices, matched expectations with a 0.3% monthly increase. Over the year, the Core CPI saw a rise of 3.9%, a slight decrease from November’s 4%. The Bureau of Labor Statistics (BLS) highlighted in its press release that the shelter index continued its upward trajectory in December, accounting for more than half of the overall monthly increase in all items.
Energy prices saw a 0.4% hike during the month, driven by rises in both electricity and gasoline indexes, which more than compensated for the decline in the natural gas index. The food index recorded a 0.2% increase in December, consistent with the previous month’s rise. Within this category, the index for food at home edged up by 0.1%, while the index for food away from home experienced a slightly higher increase of 0.3%.
Following the release of the inflation data, the US Dollar strengthened against its counterparts. As of the latest update, the US Dollar Index had risen by 0.05% for the day, standing at 102.6.
Bitcoin Price Aims For $48K
Even though the SEC’s approval of a spot ETF did not provide the expected boost for Bitcoin’s price to reach $48,000, the increasing inflation rate is now driving demand for Bitcoin. This comes as various ETFs continue to be traded on exchanges. Bitcoin’s price experienced a significant increase, rising from a low of $46,800 to a high near $48,000.
Investors often turn to cryptocurrencies as a hedge against rising inflation. Traditional assets tend to lose value in times of high inflation, whereas assets like Bitcoin are deflationary nature due to their capped supply, resulting in a surge in buying demand.
Inflation, which had experienced a decline in the autumn, experienced a slight uptick in December. This increase highlights that it may be premature to declare an end to concerns following the most significant surge in consumer prices in forty years.
The primary drivers of this rise were fundamental living costs, including increases in rent, as well as higher prices for food and gasoline. Additionally, there was an unexpected rise in the prices of used cars.
Read More