RevenueSharks, a platform for marketplace and cryptocurrency education, tweeted:
“Bitcoin has an easy path back to $20k as Stocks pushing up and positive CPI numbers.”
As per CoinMarketCap, Bitcoin increased by 3.78% over the previous 24 hours to reach $17,281 throughout intraday trade.
Because the CPI increase in October was 0.4%, the smallest increase until January 2022, it was less than anticipated. According to the U.S. Bureau of Labor Statistics
“The all items index increased 7.7 percent for the 12 months ending October, this was the smallest 12-month increase since the period ending January 2022. The all items less food and energy index rose 6.3 percent over the last 12 months … all of these increases were smaller than for the period ending September.”
The Federal Reserve (Fed) may lessen interest rate increases, which have been harmful to the crypto economy, as a result of the lower CPI data, which led to a constructive reaction in the BTC market.
One of the main things preventing cryptocurrencies from taking off significantly is the Fed's 75 basis point (bps) increase in interest rates.
The cryptocurrency market is still in trouble despite the rising CPI statistics because bulls are still biting. Material Indicators, a source of market intelligence, explained:
“CPI was lower, Jobless Claims were higher. FireCharts shows the crypto market's initial reaction to a beat on the forecasted economic numbers. Bear Market Rally is still alive BTC.”
The marketplace for digital currencies has become unstable as a result of the demise of FTX, one of the top cryptocurrency exchanges.
According to rumors, FTX's liquidity problems may have been caused by its CEO, Sam Bankman-Fried, discreetly sending at least $4 billion to strengthen its trading subsidiary Alameda Research, part of which came from customer accounts.
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