🔥Inflation in the United States is rising more than expected, and the market is reacting 👀
The consumer price index (
#IPC ) in the U.S. accelerated more than anticipated in April, shaking up the market
#cripto and reinforcing fears that the Federal Reserve (
#Fed ) may keep interest rates high for a while or even raise them.
According to the latest economic data release, the consumer price index (CPI) rose to 3.8% year-over-year, surpassing Wall Street's expectations of 3.7%. Meanwhile, the core CPI, which excludes food and energy prices, increased to 2.8% year-over-year compared to the expectation of 2.7%.
Investors from
#Criptomonedas took this data release cautiously, anticipating significant volatility. The price of Bitcoin briefly spiked near $81,000 following the report, before dropping back down to levels around $80,500.
Risk-sensitive assets, like
#bitcoin , typically take a hit when inflation remains high because elevated interest rates tighten financial conditions and liquidity doesn't flow into the market. Now, markets are looking forward to the producer price index data, comments from the Federal Reserve, and the bond market's reaction to gauge what the Fed's decision on interest rates might be.
Do you think Bitcoin can hold above $80,000 this month?
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