Bitcoin breaks $ 44k as the US announces 7% CPI

The latest figures from the US Bureau of Labor Statistics show that the consumer price index (CPI) hit 7% in December 2021.

Bitcoin was volatile prior to the announcement, fluctuating more than $ 2,000 from $ 41,000 to $ 43,000 on Wednesday.

After the numbers were released, the price continued to rise, breaking the $ 44,000 mark before falling slightly to current levels.

Source: TradingView

Before the announcement, Twitter was full of speculation. According to a Twitter poll, 53% of Coin Bureau’s 580,000 followers expected the CPI to beat the consensus estimate of 7% inflation. Also the macroeconomist and cryptanalyst Lyn Alden participation Discussions.

The Fed’s inflation chart over the past 10 years is interesting. Since the pandemic highlighted in gray, inflation has plummeted before it skyrocketed to 7%.

Source: BLS, Board of Governors

Nic Carter of Castle Island Ventures predicts more inflation and jokes that he is “keeping an eye on how inflationists deal with double-digit CPIs”.

The rate of inflation has become a major concern for the developed world, particularly the United States. 7% is the highest rate of inflation since the 1980s.

Traditional markets like the S&P start in the green, up 0.36%, while BTC is up 2.8% at press time.

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