The post U.S. CPI Inflation Data Released: Inflation Drops to 2.4%, Bitcoin Reacts with Minor Dip appeared first on Coinpedia Fintech News
The U.S. Bureau of Labor Statistics recently announced a significant decrease in the Consumer Price Index (CPI) for September, with the inflation rate falling to 2.4%, slightly higher than the expected 2.3%. This decline in inflation signals a positive change in the financial sector, showing that inflation is finally easing. Following this news, Bitcoinâs price dropped below $61,000.Â
CPI Drop To 2.3%: Cooling Inflation
Septemberâs CPI inflation rate fell by 0.1% to 2.4% which was earlier forecasted to drop by 0.2%. Although the current CPI report is down from 2.5% in August and 2.9% in July. This consistent decrease in inflation over the past year marks the sixth consecutive month of falling inflation rates, indicating a steady cooling trend.Â
Year Over Year CPI drops to 2.4%, lowest since April 2021, however it missed expectations of 2.3%. Core CPI, which excludes food and energy, also missed, rising from 3.2% to 3.3%.Miss on jobless claims at the same time. pic.twitter.com/eUW26XRzie
â Blockchain Backer (@BCBacker) October 10, 2024
Meanwhile, Experts believe this ongoing decrease could lead to a possible interest rate cut in October, which would provide relief to both consumers and investors alike.
Understanding Core CPI Insights
Core CPI, which excludes fluctuating items like food and energy, saw a slight rise to 3.3%, which was expected to remain unchanged at 3.2%. Meanwhile, both the overall CPI and core CPI indicate that efforts to control inflation are beginning to show positive results.Â
If this trend continues, it could lead to a more stable economic outlook, raising hopes for sustained improvement.
Bitcoin Price Surge
In response to the CPI data release, Bitcoinâs price saw a slight drop of 1.92%, reaching $60,740 and dropping its market cap to $1.20 trillion. The cryptocurrency appears to be losing momentum, and many analysts suggest it could potentially hit the $60,000 resistance level before beginning its bull run.Â
However, the current price movement indicates that investors are optimistic, choosing to hold their positions rather than taking profits. If inflation continues to ease, Bitcoin and other cryptocurrencies could experience stronger upward trends soon.
