Bullet Points:
1. The consumer price index (CPI) slipped 0.1% in December, in line with expectations.
2. Annualized CPI was higher by 6.5%, in line with expectations and down from 7.1% a month earlier.
3. Bitcoin (BTC) slipped about $150 on the news, with the price of a single BTC briefly dipping to around $18,000.
The US Bureau of Labor Statistics recently released data that showed a 0.1% decrease in the consumer price index (CPI) in December. The CPI is an important economic indicator that measures changes in the price level of goods and services in an economy. This decrease was roughly in line with economist expectations and signals an easing in inflationary pressures.
On an annualized basis, the CPI was higher by 6.5%, slightly lower than expectations for a 6.7% increase. This figure is down from 7.1% a month earlier, indicating that the rate of inflation has slowed significantly in the past year. The core CPI – which strips out volatile items such as food and energy – was up 0.3% in December and was higher by 5.7% on an annualized basis. This figure was also in line with expectations and down from 6% in November.
The news had a noticeable impact on the cryptocurrency markets, with Bitcoin (BTC) slipping about $150 on the news. The price of a single BTC briefly dipped to around $18,000, although it soon recovered and remains above this figure.
The news of a slowdown in inflationary pressures is generally seen as positive for the cryptocurrency markets, as it indicates that governments will have less of an incentive to print money – which can lead to devaluation of fiat currencies and cause investors to seek out alternative assets such as BTC. However, it’s important to remember that the CPI only measures consumer prices, and not the prices of goods and services used by businesses. This means that the impact of this report on the crypto markets may not be as significant as some investors may think.
Ultimately, the news of a slowdown in inflation is good news for the crypto markets, but it’s important to remember that there are still many macroeconomic factors at play that can affect the price of cryptocurrencies. As such, investors should continue to monitor the news and remain vigilant about the potential impacts of any significant economic events.