Bitcoin and Ethereum Get a Boost as CPI Shows Inflation Cooling...
Crypto and stocks rallied on Thursday after October’s CPI report indicated that U.S. inflation may finally be starting to cool off.
The latest report from the Bureau of Labor Statistics found that the consumer price index rose by 7.7% over the past 12 months. While well above the Federal Reserve’s 2% inflation target, its a step in the right direction from September’s 8.2% number. Following the report’s release, the price of Bitcoin increased by roughly 6% from $16,500 to $17,500. Ethereum, the second largest crypto asset by market cap, had a more considerable jump, rallying from roughly $1,200 to $1,273 in mere moments and now trading for $1,330. That's a 13% increase in the last 24 hours for ETH.
The bullish print marks some much needed relief for markets, which have been slammed in 2022 amid historically fast-paced monetary tightening from the Federal Reserve. The central bank’s chairman Jerome Powell has repeatedly emphasized his intention to continue raising rates until US inflation—which has marked multiple 40-year highs this year—is reigned in.
Bitcoin Options Traders, Burned by Last Month’s CPI Report, Now Seek Downside Protection
Though Bitcoin showed relative stability and positive performance against stocks in Q3, the entire crypto market marked new yearly lows this week amid the ongoing collapse of industry giant FTX, the crypto exchange founded by Sam Bankman-Fried.