Bitcoin shoots to $44,000 as US inflation hits 7% in December

According to the latest data from the United States Bureau for Labor Statistics, the Consumer Price Index (CPI) was at 7% in December.

Bitcoin (BTC), which was volatile before the announcement, fluctuated over $2,000 between lows of $41,000 and $43,000 on Wednesday morning. The price reached $44,000 after the figures were released.

Twitter was abuzz with speculation before the announcement. A poll conducted by @coinbureau found that 53% of his 580,000 Twitter followers expected CPI would exceed the consensus estimate of 7% inflation.

Lyn Alden, a macroeconomic expert and cryptocurrency soothsayer, was on the money.

Tomorrow’s December CPI report will be available. It has a good chance of reaching 7%+ year over year. But then unless monthly inflation accelerates from here, the year-over-year figure will likely peak within Q1 2022.
Lyn Alden (@LynAldenContact), January 11, 2022

Eye-opening graph of inflation from FED over the last 10 years. The graph below shows how inflation has plummeted since the pandemic (marked in grey) before accelerating to 7%.

Related: Bitcoin crash on the horizon? Expert warns that higher inflation could cause Bitcoin price to crash to $30K

Nic Carter, Castle Island Ventures’s CEO, was more tongue-in cheek before the data update. He joked that he was looking forward to seeing how inflationistas would handle higher inflation in anticipation.

Inflation rates are a major concern for developed countries all over the globe, but especially the United States. The highest inflation rate since 1980 is 7%.

Traditional markets, including the S&P, started in the green with a 0.36% increase, while BTC rose 2.8% during morning action.