Bitcoin Price Nears $41,000 as U.S. Inflation Jumps to 8.5%
Bitcoin decoupled from the Nasdaq to denote a 2.7% gain as U.S. inflation numbers recorded a new 40-year high.
- U.S. inflation hits new 40-year record at 8.5%.
- Bitcoin traded green above $40,500 as the index reading came above market expectations.
- Gasoline prices increased by 18.3%, while energy rose 32% over the last year.
Bitcoin has been holding on above the $40,000 mark as U.S. inflation rose to yet another 40-year high of 8.5%, according to data released by the U.S. Bureau of Labor Statistics (BLS) Tuesday morning.
Inflation numbers for last month, scored by the Consumer Price Index (CPI), denoted the biggest annual jump in prices since 1981. The 8.5% inflation rate came above market expectations and surpassed the 8.4% level last seen in January 1982.
The bitcoin price held its ground above $40,000 as U.S. CPI numbers were released. The peer-to-peer (P2P) digital currency trades around $40,500 at press time, denoting a 2.5% daily gain.
Bitcoin saw a sharp sell-off on Monday as it dropped below the $40,000 level. The digital money dropped from $42,400 to $39,200 yesterday in a 6.19% drop, according to TradingView data. The relief rally now calms traders as the key $40,000 level is maintained.
Bitcoin decoupled from the Nasdaq this morning as inflation numbers were revealed. The duo, which is said to have a high correlation, denotes opposite results at press time as the Nasdaq 100 index trades on a 2.35% loss.
Gasoline, shelter and food were the biggest contributors to the new all items CPI reading, BLS said. Gasoline prices alone increased by 18.3% in March and accounted for over half of the all items monthly increase. Energy rose 32% over the last year, while the food index saw the largest one-year increase since May 1981, at 8.8%.
The all items index denoted the largest 12-month increase since the period ending December 1981, whereas the all items less food and energy index saw the largest 12-month change since the period ending August 1982, at 6.5%.
