• Annualized inflation slowed to 6.5% in December from 7.1% previously, in line with economist forecasts.
• Bitcoin (BTC) saw a dip in price but remains above $18,000 following the news that annualized inflation slowed to 6.5% in December from 7.1% previously.
• The consumer price index (CPI) slipped 0.1% in December, roughly in line with expectations for a flat reading.
The US reported a slight drop in consumer price index (CPI) to 6.5% on an annualized basis in December, down from 7.1% a month earlier. This was in line with economist forecasts, and saw Bitcoin (BTC) dip slightly in price.
The CPI slipped 0.1% in December, roughly in line with expectations for a flat reading. On an annualized basis, the CPI was higher by 6.5%, in line with expectations. Core CPI – which strips out volatile items such as food and energy – was up 0.3% in December, in line with forecasts. Annualized core CPI was up 5.7%, also in line with forecasts and down from 6% in November.
Bitcoin (BTC) saw a dip in price but remains above $18,000 following the news that annualized inflation slowed to 6.5%. The cryptocurrency saw a 0.1% slip in price, as it responded to the macroeconomic data. This was reflected in a discussion among the “The Hash” panel, which discussed the implications of the data on the crypto industry.
The slight dip in the CPI and the corresponding slip in Bitcoin’s price shows that the cryptocurrency is still very much affected by macroeconomic news. This is a reminder of the volatility of the asset, which is still not yet fully understood by the wider public. However, the fact that Bitcoin’s price remains above $18,000, as well as its continued adoption as a form of currency and asset, shows that it is slowly becoming a more established asset class.