• The US Labor Department announced that the inflation numbers (CPI) for the last month of 2022 are at 6.5% YoY and the core CPI increase at 5.7%.
• This is the highest December jump in over 40 years and caused bitcoin to react with a sudden move that took it south by a few hundred dollars.
• All eyes were on the US Labor Department coming into Thursday as most experts predicted that the inflation numbers would be around 6%.
The US Labor Department just announced the inflation numbers (CPI) for the last month of 2022, which clock in at 6.5% YoY and a core CPI increase at 5.7%. This is the highest December jump in over 40 years, and the news was met with a drastic reaction from the cryptocurrency market.
Bitcoin reacted with a sudden move that took it south by a few hundred dollars, which is a direct result of the inflation numbers that were announced. All eyes were on the US Labor Department coming into Thursday as most experts predicted that the inflation numbers would be around 6%. The actual figures announced by the US government are precisely the same – a YoY increase of 6.5% for the general CPI and a 5.7% rise in the core CPI (excluding food and energy).
When it comes to the effects of this CPI news on the cryptocurrency market, Bitcoin has already experienced a sharp drop of several hundred dollars. As the US inflation rate continues to rise, this could have a long term effect on the cryptocurrency market, which could lead to further drops in Bitcoin prices.
At the same time, the US Dollar Index (DXY) has also been affected by the news, as it dropped by 0.2%, while the 10-year Treasury yield rose to 1.12%. This is indicative of the fact that the inflation news has had a ripple effect across different markets, as investors are now concerned about the potential effects of rising inflation on the US economy.
It remains to be seen how the cryptocurrency market will react to the news in the long run, but it is clear that this inflation news has made a significant impact on the market, with Bitcoin being one of the most affected. As the US inflation rate continues to rise, it is likely that the cryptocurrency market will experience further volatility.