Last Updated: 12 August 2022
Bitcoin price reacts violently to news from the United States. The US Consumer Price Index (CPI) was 8.5% in July . This is lower than the estimated 8.7% we saw earlier.
Bitcoin reacted positively to the news. The chart below clearly shows the rise shortly after the news broke.
Bitcoin koers kleurt groen na Amerikaanse inflatiecijfers https://t.co/kJNp5e1Rzf
— CryptoJournaal (@CryptoJournaal) August 10, 2022
Bitcoin is up over 12% from a month ago. At the same time, the price point of around $23,000 is not yet a cause for celebration among many investors. In 2021, the price was at $69,000 for a while.
This news is also having an impact on other markets. The three main futures on US stock indices rose in a straight line. Nasdaq futures rose by more than 2%, S&P 500 futures rose by 1.5%.
America’s CPI is calculated by the Bureau of Labor Statistics (BLS). They take an average of a basket of goods and services. It simply means that the services and products in this index increased on average by about 8.5% for the consumer.
More costs for the average American mean less disposable income. If you are struggling to make ends meet, saving in bitcoin is probably not your first thought. The price drops earlier this year don’t help either. The price of BTC is sharing in the global malaise.
Last week, the American jobs report came out, which showed that unemployment in the United States fell by 0.1 per cent to 3.5 per cent. This would give the FED room to pursue a somewhat tighter monetary policy. This, in combination with the current inflation figures, makes for uncertain times in the financial markets.
The Central Bank of America is one of the most important players in the world market. The dollar is still the most important currency.