Breaking: Bitcoin’s Price Jumps On Lower Than Expected U.S. CPI Data

Pratik Bhuyan
April 12, 2023
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Bitcoin price

The chronically high costs that have burdened American citizens have some highly encouraging news from the U.S. Bureau of Labor Statistics this Wednesday morning. Inflation fell sharply in March, falling to its lowest level in a year, according to the Consumer Price Index (CPI) — which is a key economic indicator that analyses the average change in consumer prices for a variety of products and services. In light of this news, the crypto market reacted favorably with Bitcoin’s price rising by 1.5% in the past few minutes.

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Crypto Market Reaction

As reported by CoinGape, the core CPI annual rate in the United States was 5.6% in March, which was expected to be 5.6% and the previous value was 5.5%, ending five consecutive months of decline. This in turn has led to a significant drop in the U.S. Dollar Index (DXY), which currently sits at 101.70.

Read More: Binance CEO “CZ” Says Crypto Regulatory Crackdown Will Boost Adoption

Consequently, Bitcoin’s price has continued its upward trajectory as it’s currently exchanging hands at $30,343 whereas the altcoin supremo, Ethereum, also witnessed a marginal uptick of 0.94% in minutes following the release of the CPI data. As things stand, ETH’s price is trading at $1,897  which represents a gain of 0.34% in the past 24 hours.

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U.S. Stock Markets Rise

Additionally, the U.S. stock futures moved higher after the key inflation measurement indicated that consumer prices grew in March by a smaller amount than what had been anticipated. Futures contracts based on the S&P 500 index traded 0.8% higher, whereas, the Dow Jones Industrial Average futures rose 221 points, which is equivalent to a gain of 0.6%, while futures on the Nasdaq-100 rose by 1%.

Gold, on the other hand, rallied 1.2% to $2,043.30 a troy ounce, which translates to a 13-month high following the U.S. CPI print. The Federal Reserve’s interest rate decision in May could be affected by the data in the report. Although the CPI is still up 5% year over year, this may strengthen the case for the central bank to halt its rate-hiking regime.

Also read: CFTC Bids Against SEC In A New Crypto Fraud Case; Defines Digital Assets As Commodities

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now - he has seen it all.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.