Bitcoin shoots to $44,000 as US inflation hits 7.8% in December
The latest figures from the United States Bureau of labor statistics show that the (Consumer Price Index) CPI hit 7% in December.
Bitcoin (BTC) was volatile prior to the announcement, fluctuating over $2,000 from lows of $41,000 to $43,000 on Wednesday morning. Upon release of the figures, the price continued its upward climb, touching $44,000.
Prior to the announcement, Twitter was rife with speculation. According to a poll by @coinbureau, 53% of his 580,000 followers expected CPI to overshoot the consensus estimation of 7% inflation.
Macroeconomic specialist and cryptocurrency soothsayer Lyn Alden was on the money.
December CPI comes out tomorrow and has a decent shot at reaching 7%+ year-over-year.
But then unless monthly inflation accelerates from here, the year-over-year figure will likely peak within Q1 2022. pic.twitter.com/7hjA3ehAXI
— Lyn Alden (@LynAldenContact) January 11, 2022
The graph for inflation from the FED over the past 10 years is eye-opening. Since the pandemic, marked in grey, the inflation level plummeted before beginning a dizzying climb to 7%.
Related: Bitcoin crash ahead? Expert warns higher inflation could whip BTC price to $30K
Castle Island Ventures’ Nic Carter was more tongue-in-cheek prior to the data update. In anticipation of more inflation rises, he joked that he was “looking forward to the inflationista cope if CPI prints double digits”.
Inflation rates have become of paramount concern to developed countries around the world, but particularly for the United States. 7% is the highest inflation rate since the 1980s.
Traditional markets including the S&P kicked off in the green, up 0.36%, while BTC was up 2.8% during the morning’s action.