After falling to $46,800 following the release of the US CPI data, the price of Bitcoin is now trading around $47,100. This represents a recovery from the previous decline.
In December 2023, the headline inflation rate increased to 3.4% year-on-year, which was higher than the expected average of 3.2%.
In contrast, the core consumer price index increased to 3.9% from 4.0% in November 2023, higher than the expected 3.8%.
Due to the rising inflation monitored by the Consumer Price Index (CPI) in the United States, the price of Bitcoin and the rest of the cryptocurrency market are expected to continue to benefit from the bullish trend observed in the previous days. . The cryptocurrency market is expected to see more inflows due to inflation exceeding estimates.
A higher than expected increase in the consumer price index in the United States
According to statistics provided by the consumer price index (CPI), the inflation rate in the United States has increased to 3.4% since the beginning of the year in December 2023. Considering that in November 2023 inflation was 3.1% on an annual basis, the assumption was somewhere around these figures.
The increase in the consumer price index (CPI), which according to the Bureau of Labor Statistics (BLS) would have reached 3.9% in December, is another indicator that highlights the higher than expected inflation for the month of December. December. On an annual basis, it was higher than the expectations of 3.8%, although it is slightly lower than the 4.0% reached in November.
From the beginning, the response of the US dollar index (DXY) was very optimistic. On the 15-minute chart, the DXY was showing a gain of 0.36% at the time of writing.
On the other hand, the cryptocurrency market, which was expected to react positively in the first minutes following the data release.
