Bitcoin (BTC) touched a 9-month high of $25,484 as the United States (U.S.) CPI (Consumer Price Index) inflation fell to 0.4% in February from 0.5% in January, per the Bureau of Labor Statistics (BLS). The U.S. CPI inflation, on a year-over-year basis, reportedly fell to 6.0% in February from 6.4% in January, per estimates.
The inflation core rate (stripping out food and energy costs) rose beyond the forecast to 0.5% in February against 0.4% in January (while the forecast was 0.4%). As per expectations, the year-over-year core rate was 5.5%, against 5.6% in January.
The BTC price rising to a nine-month high of $25,484 happened soon after the release of the inflation report by the BLS. Reportedly, the world’s largest cryptocurrency, Bitcoin, also touched $26,373 (gaining over 18% in the last 24 hours). Inflation concerns have been sidelined lately as the investors, the government, and the Federal Reserve are exposed to potential bank failures’ systemic risks.
In the last week, traders were anticipating the Federal Reserve would table a 50 basis points rise in the benchmark federal funds rate. But after the recent debacle of the Silicon Valley Bank and the concerns surrounding the Signature Bank, traders revised their expectations.
Now, reportedly, no federal rate hikes are expected in March, neither are any rate cuts anticipated by mid-summer. In the short-term, an increase in the U.S. CPI means a bearish trend for the price of the BTC. If BTC would fall in the short-term, bullish traders’ long-only trade might make them get liquidated.
