On March 14, 2023, the price of bitcoin exceeded $26,000 as the US inflation data arrived.
The price of bitcoin exceeded 26,000 dollars today. According to several experts, the American consumer price index also contributed to the price increase, which rose by 0.4% in February 2023.
We wrote more regarding the consumer price index published regularly by the United States Department of Labor here.
CPI rose 0.4% last month on a seasonally adjusted basis, the department noted, adding that the index for all items that measure inflation rose 6% over the past year. The Labor Department notes that inflation has produced the lowest 12-month increase since the period to September 2021.
A CNBC report traditional markets were volatile following the announcement, while cryptocurrency markets reacted positively. The price of bitcoin has skyrocketed along with ether.
The CPI measures the average change over time in the consumer prices of a basket of goods and services. It is calculated by the Bureau of Labor Statistics and used as an indicator of inflation.
The CPI reflects consumer spending patterns on items such as food, housing, transportation, clothing, medical care, and leisure. It is used to adjust wages, benefits and social security payments for inflation, measure economic performance and set monetary policy.
The broader cryptocurrency community offered mixed opinions on March 14. Anthony Pompliano, co-founder and partner at Morgan Creek Digital, weighed in on the CPI data in a series of tweets, highlighting the rise in bitcoin prices as a result of recent inflation numbers. Caitlin Longone of bitcoin’s biggest supporters and the founder and CEO of Custodia Bank, highlighted BTC’s performance following a tumultuous week in which US regulators shut down Silicon Valley Bank and Signature Bank.
At the time of writing, bitcoin was trading at $25,998, while ethereum was trading at $1,774.
