Bitcoin Soars Towards $24K as US Inflation Slows Down to 8.5%

The United States government just released the latest CPI data, indicating that inflation has finally begun to ease following several consecutive months with record-setting numbers.

As with previous examples, the price of bitcoin reacted almost immediately with a surge towards $24,000.

• Ever since the start of the year, the inflation numbers from the US have impacted BTC’s price since the cryptocurrency is considered a widely riskier asset.
• For several consecutive months, the US had to announce record-breaking inflation percentages, with the latest in July being at 9.1% – the highest in over 40 years.
• However, due to the declining oil prices, expectations were that the Consumer Price Index will be lower in July for the first time in a while.
• Minutes ago, the US indeed outlined a lower inflation number of 8.5% for the previous month, which was 0.2% less than what most predictions envisioned.
• As with previous examples, BTC reacted immediately and soared by almost $1,000 to just under $24,000. However, the cryptocurrency could be inclined to more volatility in the following hours, history shows.
• The price increase could be related to investors’ general approach to the asset class since the CPI numbers give a broad suggestion of what the US Federal Reserve could do in the next meeting in September.