• The Consumer Price Index (CPI) dipped 0.1% in December in line with expectations, with annualized inflation slowing to 6.5%.
• Bitcoin (BTC) saw a dip in price but remains above $18,000 following the news.
• The Hash panel discussed the CPI and the impact of macroeconomics on the crypto industry.
The US Bureau of Labor Statistics recently released its December Consumer Price Index (CPI) report, which showed that annualized inflation had slowed to 6.5%, in line with economist forecasts. This was a slight decrease from the 7.1% previously reported in November. Core CPI, which strips out volatile items such as food and energy, was up 0.3% in December and annualized core CPI was up 5.7%, in line with expectations.
The news of the inflation rate decrease had an immediate impact on the crypto industry, as Bitcoin (BTC) saw a dip in price but remains above the $18,000 mark. The popular cryptocurrency slipped about $150 on the news, with some analysts predicting further decreases in the coming days.
In response to the news, the popular “Hash” panel discussed the effect of macroeconomics on the crypto industry. The panelists noted that macroeconomic trends such as inflation, GDP growth and unemployment can have a major impact on the crypto market, as investors look to diversify their portfolios. They also discussed the potential impact of the US Federal Reserve’s monetary policy on the crypto industry, especially in regards to the possibility of a third round of quantitative easing (QE3). Panelists also discussed the potential implications of the US government’s new stimulus package, which could inject more money into the economy and potentially increase the demand for cryptocurrencies.
Overall, the latest CPI report was welcomed news for the crypto industry, as it shows that inflation is slowing and the US economy is continuing to recover. However, the panelists noted that investors should keep a close eye on macroeconomic trends and the US Federal Reserve’s monetary policy, as they could have a major impact on the crypto market in the coming months.