• Bitcoin (BTC) saw a dip in price after the news that annualized inflation slowed to 6.5% in December from 7.1% previously.
• The consumer price index (CPI) slipped 0.1% in December, roughly in line with expectations for a flat reading.
• Annualized core CPI was up 5.7%, also in line with forecasts and down from 6% in November.
The recent report of the US Consumer Price Index (CPI) has caused a slight dip in the price of Bitcoin (BTC). The CPI showed that inflation had slowed to 6.5% in December from 7.1% previously, in line with economist forecasts. This news caused a 0.1% slip in the consumer price index, with the core CPI – which strips out volatile items such as food and energy – being up 0.3% in December, in line with forecasts.
The slight dip in the CPI has caused a ripple effect in the crypto industry, with Bitcoin (BTC) seeing a dip in price of about $150. Despite this, the cryptocurrency still remains above $18,000. This shows the resilience of the digital asset, and its ability to remain stable despite the news of macroeconomic changes.
The news of the CPI has also caused an interesting discussion among cryptocurrency experts. Some have argued that the decrease in inflation is a positive sign for the crypto industry, as it means that there is less need for money printing which can negatively impact the value of digital assets. Meanwhile, some are of the opinion that this news could be a sign of deflation, which can be detrimental to the industry in the long-term.
Overall, it is clear that the news of the US CPI has had an impact on the crypto industry. Despite this, the digital asset is still performing well and showing its resilience. As more news is released in the coming weeks and months, it will be interesting to see how the industry reacts and what impact this has on the future of the crypto market.