Enhanced Bitcoin Volatility as US CPI Numbers Clock in at 6.5%
TL;DR The US Labor Department just announced that the inflation numbers (CPI) for December 2022 stand at 6.5% YoY and 5.7% for the core CPI. These are the highest figures in over 40 years, and they had an immediate effect on bitcoin's price. The asset jumped from over $18,300 to just under $18,000 before recovering some ground and settling back above $18,000.
The US Labor Department just announced the inflation numbers (CPI) for the last month of 2022, and they stand at 6.5% YoY.
At the same time, most experts also nailed the core CPI increase at 5.7%.
CryptoPotato reported earlier this week that all eyes will be on the US Labor Department come Thursday, with most estimations suggesting that the inflation numbers will be around 6%.
The actual figures announced by the US government are precisely the same – a YoY increase of 6.5% for the general CPI and a 5.7% rise in the core CPI (excluding food and energy). Nevertheless, both are still the highest December jumps in over 40 years.
As with previous US CPI announcements, this one had an immediate effect on bitcoin’s price.
The asset has been on a roll since the start of the year, gaining almost $2,000 in less than two weeks.
This resulted in a price jump to a monthly high of $18,400 earlier today. However, the US CPI numbers took BTC from over $18,300 to just under $18,000 in a matter of minutes. As of now, though, the asset has recovered some ground and is back above $18,000.