Bitcoin (BTC), which soared to over $1,000 in a matter of seconds Dec. 10, was due to the fact that US Consumer Price Index (CPI), data showed that November inflation was worse than expected.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
CPI November meets expectations
Cointelegraph Markets Pro and TradingView data showed that Bitcoin/USD was at $50,132 on Bitstamp when the data became publicly available Friday.
The pair was already at its highest point in more than 24 hours, an hour before Wall Street opened.
Both traditional and crypto finance analysts eagerly anticipated the CPI. Analysts favored at least 6.7% year-on–year growth for November and even more than 7%. The numbers came in at 6.8%, which was broadly consistent with conservative estimates.
Bullish all marks popping
— Alex Kruger (@krugermacro) December 10, 2021
However, the results show that CPI inflation is at its highest level in nearly 40 years.
U.S. CPI data chart. Source: U.S. Bureau of Labor Statistics
It’s still a wide range
Bitcoin’s short-term success did not last, with BTC/USD trading at below $50,000 as of the writing.
Related: Bitcoin could reach $100K and gold $2K by 2022 due to ‘deflationary factors’ — Bloomberg analyst
Analysts previously stated that the largest cryptocurrency was still stuck in a range without any visible upside bias. This would require a break above $53,600 for it to change.
Yes, there’s been a decent amount of volatility for #BTC recently In fact, $BTC has been threatening to lose this red support throughout the week but failing to confirm a breakdown BTC has returned above red yet again Still holding here until further notice#Crypto #Bitcoin pic.twitter.com/739hdAooiI
— Rekt Capital (@rektcapital) December 10, 2021
Altcoins did not react to the CPI event, with Ether (ETH), still at 1.3% in the last 24 hours.
Only Terra (LUNA), out of the top ten cryptocurrencies, managed to make a slight gain over the course of the day.