Bitcoin’s price tumbled by about $1,000 in less than a few minutes as the numbers for January’s consumer price index came on.
- The Consumer Price Index (CPI) is used to gauge the average change over time in the prices that are paid by urban consumer for a basket of consumer goods and certain services.
- Many people also refer to it as an approximation of the current inflation rates.
- There are indexes available for various states and geographic areas.
- For January, the Consumer Price Index for All Urban Consumer increased to 7.5% from 7% for December – not seasonally adjusted.
- February 2022 CPI information is scheduled for release for March 10th.
- With this in mind, a lot of polls expected an increase in the CPI, and it turned out to be a “sell-the-news” event for BTC’s price, which lost about $1,000 at the time of this writing – minutes after the numbers were released.
- At the time of this writing, bitcoin’s price sits at around $44K, down 1.7% in an hour and about 0.4% in 24 hours, but still up 19% on the weekly.
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Source: https://cryptopotato.com/bitcoins-price-drops-1k-in-seconds-as-january-cpi-comes-at-7-5/