Bitcoin responded with a sudden decline of several hundred dollars. The U.S. Labor Department has officially reported that the inflation rate (CPI) for the last month of 2022 is 6.5% year over year.
Likewise, the majority of analysts predicted the core CPI to climb by 5.7%. Earlier this week, CryptoPotato stated that all eyes would be on the US Labor Department on Thursday, with most estimates predicting that inflation will be about 6%.
The actual data released by the US government are identical: a 6.5% YoY increase for the overall CPI and a 5.7% increase for the core CPI (excluding food and energy). Nonetheless, those are the largest December increases in the last forty years.
As with prior US CPI reports, this one immediately affected the price of bitcoin. Since the beginning of the year, the value of the asset has increased by about $2,000 in less than two weeks.
Today, as a consequence, the price reached a monthly high of $18,400. however, in a few minutes, the US CPI statistics brought Bitcoin’s price from above $18,300 to slightly below $18,000. Currently, the asset has rebounded and is back over $18,000.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.