Bitcoin Rises Sharply In Price On News Of US Inflation

USA FED.

  • US Federal Reserve released inflation data
  • The consumer price index rose more than expected and is 7%
  • The bitcoin rate reacted to this with a sharp rise

A couple of hours ago, the American regulator published data on inflation for 2021 year. Compared to November, it increased by 0.5% and reached 7%. After this news, bitcoin instantly rose to almost 145 09 dollars. In the morning the price ranged from 44 before 42 thousand dollars.

The inflation rate has become the # 1 problem for the developed countries of the world, especially for the United States. 7% is the highest inflation rate since 2000 – s.

How inflation affects asset markets

We already wrote about inflation in the morning news today. In short, the higher its level, the more investors want to invest in assets that do not depend on inflation.

But there is also a downside. If inflation is high, the government may tighten controls over financial markets. For example, to raise rates, refuse to buy assets into the treasury, etc.

All markets reacted to the news about inflation. For example, the S&P index rose by 0, 39%. But BTC has grown the most (by 2.8%).

Stay with us and stay up to date with the latest news from the world of cryptocurrencies.

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