CPI data is in line with forecasts but still shows a huge spike, while the long-term consequences for Bitcoin are far from universally positive.
Bitcoin (BTC) surged over $1,000 in seconds on Dec. 10 as the United States Consumer Price Index (CPI) data showed inflation in November was worse than anticipated.Â
November CPI conforms to expectations
Data from Cointelegraph Markets Pro and TradingViewÂ showed BTC/USD running to $50,132 on Bitstamp as the data became public Friday.
An hour before the Wall Street open, the pair had already hit its highest level in over 24 hours.
CPI had been hotly awaited by both crypto and traditional finance analysts alike, with opinions favoring at least a 6.7% year-on-year increase for November, and even over 7%. In the event, the numbers broadly conformed to conservative guesses, reaching 6.8%.
CPI below expectations
all markes popping
â€” Alex KrÃ¼ger (@krugermacro) December 10, 2021
The results nonetheless mean that inflation on CPI is at its highest in almost 40 years.
Bitcoinâ€™s short-term successes did not last long, with BTC/USD back under $50,000 at the time of writing.
Related:Â Bitcoin could hit $100K, gold $2K in 2022 thanks to ‘deflationary forces’ â€” Bloomberg analyst
The largest cryptocurrency remained trapped in a range with no visible upside bias, this requiring a break above $53,600 to change, analysts previously argued.Â
Yes, there’s been a decent amount of volatility for #BTC recently
In fact, $BTC has been threatening to lose this red support throughout the week but failing to confirm a breakdown
BTC has returned above red yet again
Still holding here until further notice#Crypto #Bitcoin pic.twitter.com/739hdAooiI
â€” Rekt Capital (@rektcapital) December 10, 2021
Altcoins were unmoved by the CPI event, with Ether (ETH) still down 1.3% over the past 24 hours.
Out of the top 10 cryptocurrencies by market capitalization, only Terra (LUNA)Â managedÂ to eke out a small gain on the day.