Bitcoin predictions, stemming from the data called “CPI”, are more or less accurate. The data further suggests that the Bitcoin value surge is due. However, the future outcome of Bitcoin suggests otherwise.
On the 10th of December, 2021, Bitcoin saw the day start at the value of US$ 47,000. However, a quick surge for Bitcoin came on the same day which resulted in a thousand dollar increase in Bitcoin’s value. The reason assumed for the thousand dollar surge was attributed to the Consumer Price Index (CPI) stemming from the US. The data in CPI suggested that the rate of inflation was far worse than expected for the month of November.
The said CPI data emerging from TradingView and Cointelegraph Market revealed that BTC/USD pair reached US$ 50,132 price at Bitstamp. Even before Wall Street could resume its normal day working, the pair of BTC/USD had already earned the highest value of the day. Analysts and experts of traditional finance as well as that of cryptocurrencies were long anticipating this data of CPI to go public. They were in fact expecting that CPI would increase in the month of November either by 6.7% or 7%. It is now confirmed that there was at least a 6.8% increase in the data as had been expected. This simply means that the present inflation is the worse inflation lastly seen 40 years ago.
The surge of BTC pair with USD short-lived and once again Bitcoin’s price has been sent back under US$ 50,000.
The CPI data though badly impacted upon the crypto market, yet did not impact any of the altcoins. For instance, Ethereum has been facing difficulty and, while putting in many efforts, is unable to gain 1.3% of its value.
On the 10th of December, 2021, amongst the top-10 leading digital currencies of the world, Terra was the only crypto making some gains. However, the gains weren’t as such which could be considered phenomenal gains.
Looking at the prevailing crypto market conditions, it is hard to suggest that the start of 2022 would bring any positivity in the initial days. However, there is one possible aspect which is that inflation may lead to crypto-economy surge.