With This Month Set For Peak Inflation, How Will Bitcoin Price Move?

With This Month Set For Peak Inflation, How Will Bitcoin Price Move?

The U.S. CPI for December was released and this month could see peak dollar inflation. How will the bitcoin price reflect that?

The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

The news of today is the United States Consumer Price Index December release which came in at just over 7%. By many estimates, this could be the month that the rate of change in inflation peaks. If December is not the peak of acceleration, then it likely occurs in Q1. Our expectations for 2022 is that inflation remains significantly elevated but slows down.

As Wall Street consensus expected a higher CPI number, risk assets like bitcoin rallied higher on the release. Higher than expected inflation numbers are a higher cause for concern as this may accelerate the rate of change in the Federal Reserve Board’s monetary tightening policy.

The DXY, which measures the strength of the dollar relative to other fiat currencies around the world, fell sharply today following the release of the CPI reading.

Bitcoin and the dollar have been inversely correlated to each other for the greater part of the last two years, and a falling DXY looks to have aided the recent bounce in bitcoin.

Did you like this?
Tip Bitcoin Tradeboard with Cryptocurrency

Donate Bitcoin to Bitcoin Tradeboard

Scan to Donate Bitcoin to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate Bitcoin Cash to Bitcoin Tradeboard

Scan to Donate Bitcoin Cash to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate Ethereum to Bitcoin Tradeboard

Scan to Donate Ethereum to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Ether:

Donate Litecoin to Bitcoin Tradeboard

Scan to Donate Litecoin to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate Monero to Bitcoin Tradeboard

Scan to Donate Monero to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Monero:

Donate ZCash to Bitcoin Tradeboard

Scan to Donate ZCash to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some ZCash: