Bitcoin gained 5% after the U.S. Bureau of Labor Statistics reported that the consumer price index (CPI), a key inflation indicator, rose 0.4% in October from September. CPI was up 7.7% from a year earlier, less than the expected 7.9%, and down from 8.2% in September. October’s CPI recorded the smallest 12-month increase since January.
Bitcoin recovered from as low as US$15,682 in the last 24 hours to trade at US$17,589 at 10:00 p.m. Hong Kong time, according to CoinMarketCap data. The largest cryptocurrency by market capitalization has been dropping to yearly lows amid the FTX fiasco.
All cryptocurrencies in the top 10, excluding stablecoins, were up after the CPI data was released, according to CoinMarketCap data. Equity markets also reacted positively to the October inflation report, which hinted the U.S. Federal Reserve may slow down its pace of interest rate hikes. The S&P 500 opened 3.42% higher on Thursday than the previous close while Nasdaq Composite opened 4.39% higher.
“Despite the positive data, the Fed will keep its foot on the brake of the U.S. economy for the time being, meaning a fifth consecutive 50 basis-point increase in interest rates is possible, if not likely, next month,” Nigel Green, chief executive of financial advisory firm deVere Group, said in a statement shared with Forkast.
