Bitcoin has managed to reclaim the $18,000 level for the first time since the collapse of the FTX exchange
According to the most recent consumer price index (CPI) data released by the U.S. Bureau of Labor Statistics, inflation rose 7.1% in November on a year-over-year basis. This is lower than analysts’ forecast of 7.3%.
The price of Bitcoin briefly spiked to as much as $18,106 on the Bitstamp exchange due to cooler-than-expected CPI data.
Bitcoin and crypto soared in tandem with futures tracking U.S. equities. The S&P 500 index is on track to add 3% at the market open following the most recent CPI data. Nasdaq futures are up by more than 4%. Cryptocurrency-related stocks are finally seeing some love from traders, with Coinbase (COIN) jumping by nearly 7% in pre-market trading, and MicroStrategy (MSTR) on track to add 5%.
While inflation is down significantly from the 9.1% mark in June, it is also far above the Federal Reserve’s 2% target.
Energy, gas and used car prices all declined in November, signaling that inflation has peaked.
Futures are now implying a higher chance for a lower 25-basis point hike in December following the most recent inflation data.
As reported by U.Today, the Fed announced the fourth consecutive 75-basis-point interest rate increase in early November.
Macro headwinds are viewed as one of the key reasons for Bitcoin’s underperformance in 2022. Bitcoin is still down 74% from its record peak that was achieved last November.
Source: https://u.today/bitcoin-just-surged-to-18k-heres-why