Bitcoin, Ethereum Skyrockets As CPI Data Shows Cooling Economy

U.S. Bureau of Labor Statistics issued the most awaited Consumer Price Index (CPI) data for the month of July. The positive CPI data has left the biggest crypto green. Bitcoin (BTC) and Ethereum (EHT) both have jumped by over 3%.

Bitcoin surges over positive CPI

The price that customers pay for goods and services rose 8.5% in July from a year ago. The latest data forms to be less than the expected rate. This signals a slowdown in the rising prices over the past month which was directly impacted by the gasoline price.

Since the announcement, Bitcoin (BTC) prices have surged by around 3%. BTC breached the crucial $24k price level. Bitcoin is trading at an average price of $24,097, at the press time. However, BTC’s 24 hour trading volume has jumped by 13% to stand at $28.1 billion.

However, the second largest crypto, Ethereum (ETH) jumped by a whopping 6% after the release of positive CPI data. ETH is trading at an average price of $1,822, at the press time. ETH’s 24 hour trading volume surged by more than 25% to stand at $20.7 billion.

Food index records fastest growth since 1079

According to the report, prices were flat on a monthly basis as the energy price broadly dropped to 4.6%. However, The oil price dropped 7.7%. This has balanced an over 1.1% monthly gain in food prices. While a 0.5% increase has been registered in shelter costs.

As per a survey conducted by Dow Jones stated the expected CPI to increase by 8.7% on annual basis. While it is expected to rise by 0.2% monthly. Keeping food and energy prices apart, the core inflation jumped by 5.9% annually. While it grew by around 0.3% monthly in comparison to estimates.

A report mentioned that the food index surge is a surge of 10.9% over 12 months. It is the fastest growth since May 1979.