With the announcement of the US Consumer Price Index (CPI) in line with expectations, an upward movement began in Bitcoin (BTC).
US October inflation was announced as 2.7% on an annual basis, in line with expectations of 2.7%. After the data came at the expected level, the dollar index (DXY), which is known to be inversely correlated with Bitcoin, moved downward, while an increase of nearly $800 was observed in Bitcoin.
Bitcoin, which was traded at $98,054 just before the US inflation announcement, rose to $98,840 with the data. The movement affected the entire cryptocurrency market, and Ethereum (ETH) reached $3,745.
Prices are trading with lower-than-expected volatility, with Bitcoin trading at $98,720 and Ethereum at $3,741 at the time of writing, according to CoinGecko data.
Inflation in the US increased in June and July of last year, but then started to decline again. Since then, inflation has been slowly decreasing. In parallel with this, the FED has reduced interest rates by a total of 75 basis points in the past months.
It is thought that the US Federal Reserve (FED) will reduce the rate by 25 to 50 basis points once more this year, provided that there is no major increase in the inflation rate.