Crypto Market Bounces Back due to Better than Expected CPI Figures
“The crypto market bounced back as the CPI report from the US Labor Department highlighted that CPI rose to a 7% clip in December. The investors expected it to be way higher and as the inflation was better than they expected, the bounce was inevitable. Bitcoin is up by 2.42% in the last 24 hours.”
The Bitcoin is changing hands at the price of $43,627 at the time of writing which is a gain of 2.42% from yesterday. The boost to the price came just after the US Labor Department released the CPI index report. The Consumer Price Index (CPI) is an important gauge for measuring inflation and its value being lower than the expectation of the investors led to the rise of the price of Bitcoin and top altcoins. The CPI rose to 7% in December which is the highest after 1980’s.
This recent bounce is the indication that the Bitcoin has started to recover after an almost 30% decline from the all-time high of around $69K. The sentiment is changing to a bit relaxed as the people are now getting a jist of the upcoming monetary policy by the Federal Reserve, which was expected to be harsher. The FUD around the interest hike and shrinking balance sheet of the Federal Reserve has now started to settle.
The fear and greed index is still in the “extreme fear” zone with a value of 21. The bounce back seems good but still the upper limits of the bounce are restricted to $45-$46K in the short term. Near Protocol on the other hand reached an all time high amidst the bounce.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
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