The initial expectations for the CPI numbers for March showed a decline in the inflation rates to 5.2%.
In reality, the third month of the year saw an increase of 5%, shown by the Consumer Price Index.
At the same time, the core CPI, which excludes more volatile niches such as food and energy, was expected to be somewhere between 5.5% and 5.6%.
The Core CPI has actually matched the expectations, standing at 5.6%.
The CPI for February stood at 6%, which was a decline compared to January. However, dropping by another 1% had an immediate effect on bitcoin’s price.
The cryptocurrency skyrocketed by almost $500 in minutes after the numbers went out. Bitcoin traded calmly at $30,000, as reported earlier, but jumped to $30,500.
Being considered a risk-on asset, BTC’s short-term price performance is strongly correlated to the CPI data.
This is because the inflation numbers determine the monetary policy undertaken by the US Federal Reserve and whether it will continue spiking the key interest rates.
The declining inflation YoY shows that the Fed’s actions have an effect and the central bank could start reversing its strategy soon.
The post Bitcoin Jumps $500 as US CPI Clocks in at 5% for March 2023 appeared first on CryptoPotato.
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