According to the Consumer Price Index statistics from the United States, inflation reached 7% in December 2021, rising 0.5 percent month over month. Following the news, Bitcoin nearly surpassed $44,000.
According to the most recent data from the United States Bureau of Labor Statistics, the (Consumer Price Index) CPI reached 7% in December.
Bitcoin (BTC) was erratic before to the announcement, ranging from lows of $41,000 to highs of $43,000 on Wednesday morning. Following the announcement of the numbers, the price continued to rise, reaching $44,000.
Twitter was buzzing with conjecture prior to the announcement. According to a poll conducted by @coinbureau, 53% of his 580,000 followers predicted CPI to exceed the consensus estimate of 7% inflation.
Lyn Alden, a macroeconomic specialist and bitcoin forecaster, was spot on.
The FED’s inflation graph for the last ten years is eye-opening. Since the epidemic, which is indicated in grey, the inflation rate has fallen before commencing a dizzying increase to 7%.
Prior to the data update, Nic Carter of Castle Island Ventures was more joking. In anticipation of further inflationary pressures, he said, “I’m looking forward to the inflationista coping if CPI prints double digits.”
Inflation rates have become a major worry for developed countries worldwide, particularly the United States. The current inflation rate of 7% is the highest since the 1980s.
Traditional markets, such as the S&P 500, started the day in the green, up 0.36 percent, while Bitcoin was up 2.8 percent.
