The United States Government has recently shared the Consumer Price Index (CPI) for the month of July, which is quite promising. It has not only helped the US economy to get a breather but has also boosted investors’ trust in cryptocurrencies.
Sweet Music for Cryptocurrencies
The recent release of the CPI data for the month of July has proven to be a beautiful song for the investors of cryptocurrencies.
The data is very positive and it has helped boost the confidence of investors in supporting cryptocurrencies.
With the CPI data coming in, people are less fearful of the inflation/interest rate hikes and are getting back to normal in terms of their investments.
Prices Declining Lower than Expected
The US Commerce Department was the one that published the CPI results for July. It also shared the inflation reading, which was quite promising not only for the investors but for common people as well.
It showed that the prices had started to decline at a rate lower than the one that was expected by analysts and economists.
Impact on Bitcoin Price
The release of the CPI data worked in favor of Bitcoin as its price experienced a significant push following the release of the data.
Prior to the posting of the CPI data, the trading price of Bitcoin was around $23,850. Right after the announcement, its price shot up and Bitcoin was seen climbing over the $24k barrier for good.
In a matter of 24 hours, the trading price of Bitcoin has gained an almost 3% surge. The Bitcoin price felt a sudden gush in the upward direction and it easily broke past the $24k barrier.
Even now, the trading price of Bitcoin is over the particular barrier and it is inching closer to hitting the $25k barrier if positive reports keep coming in.
In the past couple of weeks, the trading price of Bitcoin has continued surging. Things have only gotten better for Bitcoin in the past couple of weeks and they are likely to perform well in the future as well.
US Federal Reserve’s Next Move
The US Federal Reserve has proven to be very calm and collected throughout the inflation period.
They have kept the situation under control and have continued handling the inflation without pushing the country into recession.
As the positive results are coming in, the Feds are more than confident to proceed with boosting the interest rates. They will be implementing better interest rates in the upcoming meets in September that would be considered moderate.
According to many cryptocurrency analysts, if more positive results keep coming in, the situation would become quite favorable for Bitcoin.
In the best-case scenario, Bitcoin may be able to hit a high trading value of $29k.