Bitcoin Spikes and Dips as US Inflation Tops 7.9%, ECB Keeps Rates Unchanged – Trustnodes

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.8 percent in February on a seasonally adjusted basis after rising 0.6 percent in January, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 7.9 percent before seasonal adjustment.

A 7.9% inflation rate was what the market expected, with oil and gas both up 38% last month.

That led to some confusing action on bitcoin’s price as it jumped due to its inflation protection qualities based on its fixed supply, but then dipped again as US stock futures turned red -1.2%.

The European Central Bank (ECB) also announced earlier today they keeping interest rates at 0%, but surprised the market by stating they are to remove stimulus a lot quicker than expected.

It said monthly net purchases under the program would amount to €40 billion in April, €30 billion in May and €20 billion in June to be phased out completely in the third quarter while FED is ending theirs this month.

The European all Stoxx index is down thus 2.8% today. It was red even before ECB’s decision after jumping a rarely seen 7% on Wednesday.

One reason might be because the German finance minister appears to be pouring some cold water over the idea of joint EU bonds on energy and defense.

All 27 member states are currently meeting in Versailles until tomorrow with energy and defense very much the priority.

Any movement on them joint bonds therefore will move markets with this being one of the most important meeting of EU member states since its founding.