Saturday, 30 September 2023

Crypto News

Bitcoin price reacts as 3.7% CPI sees inflation jump beyond forecasts

Bitcoin price reacts as 3.7% CPI sees inflation jump beyond forecasts

Bitcoin (BTC) saw snap volatility on Sep. 13 as United States macroeconomic data showed inflation beating expectations.

BTC/USD 1-hour chart. Source: TradingView

Fuel, shelter boost August CPI beyond target

Data from Cointelegraph Markets Pro and TradingView followed BTC price action as it threatened a fresh loss of the $26,000 mark.

The Consumer Price Index (CPI) print for August came in at 3.7% year-on-year — 0.1% higher than forecast.

“The index for gasoline was the largest contributor to the monthly all items increase, accounting for over half of the increase,” part of an official press release from the U.S. Bureau of Labor Statistics read.

“Also contributing to the August monthly increase was continued advancement in the shelter index, which rose for the 40th consecutive month.”

U.S. CPI 12-month percentage change chart. Source: U.S. Bureau of Labor Statistics

Earlier on the day, crypto market participants had warned that a “hot” CPI reading would pressure the market, as it would imply that inflation remained more stubborn than hoped. This in turn could have implications for how restrictive economic policy remained in future.

“I think in next CPI we see +4% with the gasoline prices going up this fast,” popular trader CrypNuevo told subscribers on X (formerly Twitter) in part of a reaction.

“Inflation is still a problem, and a big problem in this second half of the year.”

CPI was already forecast to beat its July year-on-year figure, with August at 3.6% versus the previous 3.2%.

Bitcoin bid liquidity sticks to $25,000 and below

Prior to the release, Keith Alan, co-founder of on-chain monitoring resource Material Indicators, was optimistic about the week’s BTC price momentum holding out.

Related: GBTC ‘discount’ hits smallest since 2021 despite BTC price at 3-month lows

“The strength of BTC momentum has faded a bit since yesterday, but so far it’s still strong enough to hold on to most of what was reclaimed after the bounce,” part of an X post read.

Alan reiterated that “lots of technical resistance” remained above the current spot price range, this coming in the form of multiple daily moving averages.

With the Wall Street…

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