The post US Annual CPI Drops Below Expectations To 3.2%! Bitcoin Price Sets Target Of $40K appeared first on Coinpedia Fintech News
The US Bureau of Labor Statistics (BLS) announced on Tuesday that the annual inflation rate in the United States, gauged by the Consumer Price Index (CPI), decreased to 3.2% in October. This significant decrease indicates a slowing in the rate of inflation, triggering a rebound in the crypto market with BTC price surging from $36K zone.
US CPI Comes In Softer Than Expected
In October, US inflation showed a general slowdown, marking a positive step for the Federal Reserve in its extended effort to control price increases.
Data from the Bureau of Labor Statistics, released Tuesday, revealed that the core consumer price index, which omits food and energy prices, rose by 0.2% from September. Economists prefer this core measure as it more accurately reflects the underlying inflation trends compared to the overall CPI. This moderation in the core index was influenced by lower gasoline prices, which helped to keep overall inflation in check.
Consumer prices rose by 3.2% compared to the same month last year, a slight decrease from the 3.7% increase observed in September and marginally below what economists had anticipated (3.3%). Excluding food and energy, the “core” prices saw a 4.0% rise, also showing a modest slowdown from the previous month’s figures.
The BLS said in the press release, “The index for shelter continued to rise in October, offsetting a decline in the gasoline index and resulting in the seasonally adjusted index being unchanged over the month. The energy index fell 2.5% over the month as a 5.0% decline in the gasoline index more than offset increases in other energy component indexes.”
Following the news, the US Dollar experienced a sharp decline in value. As of the latest reports, the US Dollar Index had fallen by 0.77% on the day, standing at 104.8. Additionally, the yield on the benchmark 10-year US Treasury bond saw a significant drop of nearly 3.1% on the day, hovering around 4.51%.
Bitcoin Shows A Positive Momentum
Following the news, BTC price made a solid rebound from the low of $36,200. The price of Bitcoin, which often responds to global economic trends, has set a new target, aiming to breach the $40,000 mark.
The lowering inflation rates can increase investor confidence, leading to more investments in riskier assets like cryptocurrencies. Also, Bitcoin is increasingly viewed as a ‘digital gold,’ a hedge against inflation, and a store of value. With the CPI dropping, investors might be seeing this as a solid time to ‘buy the dip’ for Bitcoin before it potentially increases in value.
Bitcoin, following a substantial five-week surge that boosted its value by almost 40%, has recently been halted, hovering around the $37,000 mark for the past few days. With the initial excitement surrounding the potential approval of a spot bitcoin ETF declining, investors bullish on Bitcoin are now turning their attention to the latest CPI report, hoping it could serve as a new catalyst.
#News #Bitcoin #CPIdata #Cryptocurrency [Source: Coinpedia]