Bitcoin Up By 10% As US CPI Increased Less Quickly Than Anticipated In October

Bitcoin Up By 10% As US CPI Increased Less Quickly Than Anticipated In October

The consumer price index (CPI) increased by 0.4% in October, much less than the 0.6% consensus estimate, according to data released on Thursday by the U.S. Labor Department. In contrast to expectations for 8% and down from 8.2% in September, the annual pace slowed to just 7.7%.

Due to the FTX meltdown, Bitcoin (BTC), which dropped to a new two-year low of $15,554 on Wednesday, quickly gained $1,500, or roughly 10%, in the minutes following the report. Its price at the time of publication is $17,750.

One of the important reports the Federal Reserve will review before the Federal Open Market Committee's (FOMC) subsequent and year-end meeting on December 14–15 is the October CPI. At that meeting in 2022, the FOMC is anticipated to increase its reference fed funds rate for a seventh time.

While equity futures are soaring on the belief that the Fed's tightening cycle may end sooner than initially anticipated, bitcoin is only experiencing a modest uptick. S&P 500 futures are up 3%, while Nasdaq futures are up just under 4%. The 10-year Treasury yield has dropped significantly, by 21 basis points, to 3.93%, signaling that bond markets are also on the upswing.