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- 1 The US Department of Labor’s CPI data for February 2023 is out suggesting an inflation rate of 6%.
- 2 Positive sentiments push Bitcoin to the $26K mark.
The latest Consumer Price Index (CPI) data is out; US inflation is now 6%, fueling BTC to touch the $26K mark. After a bad year of lows, Bitcoin finally rallied sharply up to its highest point since June 2022 after the United States Department of Labour released the latest CPI data for February 2023.
What do these numbers say? Where’s inflation now?
The comprehensive data shows that CPI raised by 0.4% last month while adjusted on a seasonal basis. The department noted that the all-item index, which denotes inflation, increased by 6% over the last year. Confirming that the current inflation rate has been at a 12-month low since September 2021.
The much-awaited report has different effects on the traditional and crypto markets. The conventional market was reportedly volatile post-release, while the cryptocurrency market reacted positively. Bitcoin jumped, along with ETH.
What is CPI, and what does it implies?
The consumer Price index measures the average changes over time for goods and services. This is also considered an indicator of inflation and is calculated by the Bureau of Labor Statistics.
CPI sheds light on the consumers spending patterns on various items like food, housing, clothing, transportation, recreation, and medical care. These gathered parameters are then used to adjust wages and benefits along with social security payments for inflation. These are also used to measure economic performance and set monetary policies.
The United States Department of Labour statements noted that the shelter index emerged as the largest contributor to the monthly increase for all items. Managed to account for 70% of the CPI increase as of February 2023 report, which shows data for the last 12 months. Along with significant contributions from recreation, food, household furnishing, and operations.
The increase in the food index last month was 0.4%; in comparison, the food at home index jumped by 0.3%. The energy index saw a correction of 0.6%, and the natural gas and fuel oil indexes also considerably declined in February 2023.
On a border level, the cryptocurrency community offered diverse takes on March 14, 2023. Co-founder and partner at Morgan Creek Digital, Anthony Pompliano, supported the CPI updates in recent tweets while calling attention to Bitcoin’s surge proportionate to the latest inflation numbers.
Bitcoin (BTC) – Where does it Stand Now
When writing, BTC was trading at $24,904.02 with a jump of 2.12%, and its value against ETH raised by 0.27% to 14.85ETH. Its market cap swelled by 2.18% to $481 billion; at the same time, its volume upheaved by 9.91% to $53.1 billion in the last 24 hours. Still, at rank 1, BTC enjoys a market dominance of 43.75%. At the same time, its ROI remains strong at 18,296.85%.
Both the MACD and the EMA depict positive sentiments. The abnormally large bullish candle might see some correction in the coming days. But if the overall market sentiments remain positive, it could continue its journey toward the supply zone.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
