Bitcoin initially rose more than 2 percent to $28,250.29 after the publication. At around 19:00 Norwegian time, things completely turned around and Bitcoin fell into red territory. At most, Bitcoin was down 2.5 percent.
Annual consumer price growth fell to 4.9 per cent, against an expected 5.0 per cent. In turn, core inflation of 5.5 per cent was equal to the consensus estimate. By comparison, the Fed’s key interest rate is 5.0 per cent.
“When it comes to inflation data, bitcoin embraces its identity as a risky asset,” said Callie Cox, an analyst at investment firm eToro, according to CNBC.
Bitcoin has outperformed the S&P 500 five of the last six inflation days
“Bitcoin has outperformed the S&P 500 on five of the last six inflation numbers days and it’s on track to make it six out of seven with today’s rally,” Cox said after Bitcoin’s rally.
It may appear that the trend is about to reverse, as at the time of writing the S&P 500 is only down 0.05 percent while Bitcoin, which has recovered somewhat, is still down 0.65 percent.
Bitcoin’s development, 10 May. Source: Coindesk
The second largest cryptocurrency, Ethereum, has had an almost identical development to Bitcoin after today’s inflation figures and fell significantly at the same time. Ethereum has also recovered somewhat and is at the time of writing down 1.01 percent.
2023-05-10 18:20:16
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