Bitcoin rallies after inflation reading | Crypto

Bitcoin rallies after inflation reading

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– Bitcoin rebounded on Thursday after dropping to a low not seen since July 2 minutes following the release of September’s inflation reading that came in well above expectations.
– Bitcoin was changing hands at $19,407 Thursday afternoon, up 1.35% in the last 24 hours.
– Year-over-year inflation for last month was 8.2% for September, according to the government’s U.S. Consumer Index Price (CPI), higher than Wall Streets consensus expectations for 8.1%.
– The data show that inflation is proving more difficult to tame despite multiple Federal Reserve interest rate hikes that have largely depressed stocks and cryptocurrency this year.
– When inflation has come in higher than consensus estimates this year, bitcoin has sold off an average of 4% in the 30 minutes following the economic release, according to Singaporean crypto fund QCP Capital.
– Though today’s move fell in line with the 30-minute average, its still leaving plenty of market observers puzzled.
– Over the past month, the Nasdaq and S&P 500 have each sold off by 13%. After having lost 56% in the second quarter, bitcoin has fared slightly better, down 4% for the same period.
– Mike Novogratz, founder and CEO of major crypto investment manager Galaxy Digital, told Yahoo Finance earlier this week that the picture shouldn’t be expected to improve for cryptocurrencies.
– “Revenue is coming down in the industry, [trading] volumes are down, excitement is down,” Novogratz said, “and this [crypto] winter could last longer than people think, it might be shorter. It’s hard to predict.
– Ben McMillan, founder and chief investment officer with hedge fund IDX, told Yahoo Finance that the narrative around an earlier-than-expected Federal Reserve pivot in monetary policy may be coming to bear in light of the possibility that liquidity could “dry up” in the U.S. Treasury markets.

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