Bitcoin changes little as US inflation cools

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Bitcoin quickly rebounded above US$18,000 at 11:00 p.m. Hong Kong on Friday after falling just below news that the US consumer price index, a key indicator of the Inflation increased by 6.5% in December compared to the previous year, which is in line with expectations. .

See related article: Markets: Bitcoin, Ether Rise as Investors Await US Inflation Data; Polka Dot Earnings

Fast facts

Bitcoin, the largest cryptocurrency by market capitalization, surged above US$18,000 for the first time in nearly a month before the US Bureau of Statistics released December inflation data on Thursday, according to data from CoinMarketCap.

Bitcoin’s value has recovered more than 7% in the past week after hitting yearly lows following the collapse of FTX, once the world’s second-largest cryptocurrency exchange.

Bitcoin is still down more than 70% from its peak in November 2021, when it hit an all-time high of over US$68,000. It was trading at US$18,100 as of Thursday midnight in Hong Kong.

Ethereum also fell slightly after the release of inflation data and was trading at US$1,386. It rose 4.62% over the 24 hours to midnight in Hong Kong.

The S&P 500 opened Thursday up 2.64% from the previous close, while the Nasdaq Composite started the trading day up 3.34%.

Many investors are hoping that the latest CPI data, which showed the biggest monthly decline since April 2020, could slow the Federal Reserve’s aggressive rate hikes.

The data confirms that inflation is finally under control, which means there is a better chance that the Federal Reserve will pursue less aggressive interest rate hikes in the world’s largest economy, said Nigel Green, director general of fintech company deVere Group in an email to Forkast. .

The core CPI, which excludes energy and food prices, gained 0.3% month over month. Compared to a year ago, the Core CPI index increased by 5.7%.

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