The US consumer price index drops from October’s 7.7% to November’s 7.1%.
The inflation statistics sent the price of bitcoin (BTC) soaring by more than 6 percent.
The publication of the November statistics for the Consumer Price Index (CPI) by the U.S. Bureau of Labor Statistics caused a sharp increase in the value of cryptocurrencies including Bitcoin (BTC). The US consumer price index drops from October’s 7.7% to November’s 7.1%. CPI for November was predicted to come in at 7.3%.
The inflation statistics sent the price of bitcoin (BTC) soaring by more than 6 percent. The Bitcoin price has from a low of $16,943 to a high of $17,904. The increase in the volume of over 25% is indicative of increased trading activity.
The price of Ethereum (ETH) also increased by more than 7 percent after the CPI report was made public, and it is now trading at $1,338. In the previous 24 hours, trade volume increased by 35%.
All Eyes on Interest Rate Hike Next
Both the energy and food price indices rose, albeit by less than they had in the previous month (October): 13.1% and 10.6%, respectively. However, the CPI rose by just 0.1% from the previous month, which was lower than the 0.3% that had been anticipated.
As a consequence of inflation’s slowdown, Wall Street anticipated similarly lower consumer price index data. On Monday, U.S. equities rose as traders anticipated a lesser interest rate hike from the Federal Reserve this week in light of easing inflation and a weaker economy.
If the U.S. Consumer Price Index comes in at 6.9% or below, JPMorgan projects a 10% increase in stock prices. JPMorgan, on the other hand, predicted a CPI of 7.2%. The lower CPI helped Bitcoin and Ethereum’s price surge.