Business News Asia
Bitcoin crossed the $24,000 mark and rose along with Wall Street due to the lower-than-expected Consumer Price Index (CPI). Analysts say this indicates that U.S. inflation has peaked and could ease pressure on the Federal Reserve (Fed) to raise interest rates.
Currently, bitcoin is up 6.37% at $24,359.16.
The Dow jumped more than 400 points to cross the 33,000 mark, with all stocks gaining in response to the lower-than-expected consumer price index.
Bitcoin is up 12.3% in July after falling below $20,000 in June. Bitcoin is currently on the rise, but is still below $69,000, the record high set in November 2021.
Bitcoin fell earlier on concerns that the Fed’s accelerated rate hikes and balance sheet cuts could strain market liquidity and put further pressure on the U.S. economy.
Investors reduced expectations for a 0.75% rate hike by the Fed at its September monetary policy meeting and increased expectations for a 0.50% rate hike after lower-than-expected U.S. consumer price index numbers.
The Bureau of Labor Statistics reported that the consumer price index, rose 8.5% year-on-year in July after reaching a 40-year high of 9.1% in June.
On a month-on-month basis, the CPI did not rise further.
Meanwhile, core CPI (excluding food and energy) rose by 5.9% year-on-year in July.
On a month-on-month basis, the core CPI rose by 0.3% in July.
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