Bullet Points:
• Annualized inflation slowed to 6.5% in December from 7.1% previously.
• Bitcoin (BTC) saw a dip in price but remains above $18,000 following the news.
• The consumer price index (CPI) slipped 0.1% in December, roughly in line with expectations for a flat reading.
The US economy saw a slight dip in inflation in December, with the consumer price index (CPI) slipping 0.1% in line with expectations for a flat reading. On an annualized basis, the CPI was higher by 6.5%, in line with expectations and down from 7.1% a month earlier. The core CPI – which strips out volatile items such as food and energy – was up 0.3% in December, in line with forecasts. Annualized core CPI was up 5.7%, also in line with forecasts and down from 6% in November.
The news had an effect on the cryptocurrency market as well, with Bitcoin (BTC) slipping about $150 when the news broke. However, BTC remains above $18,000 and the cryptocurrency market has shown resilience to macroeconomic news.
The impact of macroeconomic news on the cryptocurrency market is not yet fully understood. Many commentators believe that the current bear market has been caused by a combination of macroeconomic news and market manipulation. It is possible that the current bear market is caused by a combination of macroeconomic news, market manipulation, and investor sentiment.
The long-term impact of macroeconomic news on the cryptocurrency market is likely to be significant. If the US economy continues to experience inflation, it is likely that investors will flock to Bitcoin and other digital assets as a hedge against inflation. On the other hand, if the US economy experiences deflation, investors may move away from Bitcoin and other digital assets as a safe haven.
In the short term, it is difficult to predict the exact impact of macroeconomic news on the cryptocurrency market. However, it is likely that the news will continue to influence investor sentiment and the overall performance of the market. As such, investors should continue to monitor macroeconomic news and their potential impact on the cryptocurrency market.