Wednesday, January 19

Bitcoin Price Bounces $2K as US Inflation Numbers Highest in 40 Years


The inflation numbers in the United States for November are out, and it appears that the Consumer Price Index is at its highest point in about 40 years. Bitcoin’s price spiked above $50K on the news, albeit briefly.

  • Bitcoin’s price surged by almost $2,000 in a few hours, reaching an intraday high above $50K before retracing to where it currently trades at about $49,500.
img1_btc
Chart by TradingView
  • This comes as the monthly inflation numbers in the United States became public today.
  • According to the US Bureau of Labor Statistics, the Consumer Price Index (read inflation) for November reached 6.8%. The numbers for December will be published on January 12, 2022.
  • Data from the World Bank reveals that this is the highest inflation has been in the US since 1981 when it stood at upwards of 10%.
  • 1990 is the closest we got to this high of an inflation as the number stood at 5.4% back then.
img1_inflation
Source: Macrotrends, World Bank
  • Legacy markets also bounced on the news.
  • At the time of this writing, the NASDAQ 100 is up 0.74%, the S&P 500 is up 0.67%, and the DJIA is up 0.45% hours after the market open.
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