Bitcoin rises above $17,700 on lower-than-expected U.S. CPI numbers

Bitcoin rose above $17,700 yesterday and recovered after the release of the Consumer Price Index (CPI), which was lower than expected. This could be a factor that encourages the U.S. Federal Reserve (Fed) to slow down the rate hike.

This morning, the bitcoin price was $17,784.72, up 3.38%.

The Dow Jones Industrial rose 555 points and broke through the 34,000 mark yesterday after the U.S. published CPI figures that were below analysts’ expectations. This could be an indicator that inflation in the U.S. has peaked.

Bitcoin surpassed $69,000 in November 2021. It was at a record high before falling below $20,000 in June 2022 on fears that accelerating interest rate hikes and shrinking Fed balance sheets would strain market liquidity and plunge the U.S. into recession.

The billionaire investor predicts that Bitcoin will rise to $250,000 by mid-2023, supported by fundamentals that will continue to drive the price. Investors had previously expected Bitcoin to rise back above $250,000 by the end of the year.

For Bitcoin to reach $250,000 as expected, it would need to recover 1,400% from its current level of $17,000.

The investor’s predictions were foiled by Standard Chartered Bank, which warned in a report that Bitcoin could fall to $5,000 next year. Meanwhile, the founder of Mobius Capital Partners expects Bitcoin to fall to $10,000.

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