Bitcoin Breaks Above $24,000 As U.S. Inflation Dips To 8.5%

Summary:

U.S. Inflation numbers were released on Wednesday, triggering a move in the price of crypto assets.Consumer Price Index data stood at 8.5% for July 2022.The numbers fell from your 9.1% level reported in June.It’s also the first time U.S. Inflation numbers have dipped since April 2022.Cryptos like Bitcoin and Ethereum reacted to the news positively with pumps.Technical analyst Will Clemente previously tweeted that today’s CPI report would determine if a short risk-on bear market rally continued or not.

Crypto markets are in green on Wednesday on the back of the drop in U.S. Inflation numbers for July 2022. Consumer Price Index data showed that inflation dipped to 8.5% in July, signaling the first drop in U.S. inflation since April 2022.

The 8.5% level is down from your 9.1% reported in June. Technically analysts had expected a number around 8.7% or greater, per reports.

Consumer Price Index is really a tool leveraged by economists to look for the average changes in prices paid by consumers for goods and services over a period. This measurement is often synonym with inflation in virtually any given economy.

Usually, CPI numbers translate to an increased rate of inflation and vice versa.

Wednesday’s report of reduced inflation numbers may possibly also incentivize the U.S. Federal Reserve to look at a less aggressive rate hiking strategy. The agency announced a hike of 75 basis points at the final meeting, EthereumWorldNews reported.

At that time, crypto assets like Bitcoin struggled to keep gains as back-to-back hikes by Federal Reserve supposedly caused fear and panic through the entire digital asset market.

Crypto Market Pumps As Ethereum And Bitcoin LIVE GREEN

Crypto asset prices reacted for the CPI report with pumps in token prices. At press time, both market leaders Bitcoin (BTC) and Ethereum (ETH) have surged a lot more than 3%, minutes following the inflation numbers were released.

BTC broke above the $24,000 level after struggling to climb above exactly the same range earlier inside the week. ETH also showed strength, pumping over $1800 because the Merge approaches.

BTC Daily Chart (Source: TradingView) ETH Daily Chart (Source: TradingView)

Technical analyst Will Clemente predicted that on August 8 the fact that CPI report would play a determining role in the continued short-term risk-on bear rally.