Bitcoin rejects sell-off as 7.5% US inflation fails to keep BTC down for long
Bitcoin (BTC) fell immediately on the latest United States consumer price index (CPI) data Feb. 10 in a surprise move that deflated bulls.
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it dropped $1,800 after January's CPI print came in at 7.5%.
Despite being 0.2% higher than expectations, surging inflation failed to have the positive impact on risk assets such as Bitcoin that characterized recent months.
Given the pace of year-on-year price increases, analysts argued, the Federal Reserve may now have more impetus to begin interest rate hikes sooner.
"The Consumer Price Index (CPI) results for the U.S.A. are coming in at 7.5% year-over-year, the expectations were 7.3% year-over-year. $DXY is shooting up and risk-on assets are dropping down like Bitcoin & equities," Cointelegraph contributor Michaël van de Poppe reacted.
Fellow trader and analyst Scott Melker, known as the "Wolf of All Streets," was unimpressed by the market.
Funny, I thought Bitcoin was supposed to go up whenever they admit that inflation is bad, but instead people dump it because they are afraid the Fed will actually try to deal with inflation, proving once again that humans are dumb af.
For economist Lyn Alden, however, it was cash savers w inflation was dealing the real pain.
"Official inflation currently has its biggest gap over short-term interest rates since 1951," she noted alongside a chart.
No sooner had Wall Street trading begun on Thursday, however, did Bitcoin not only reverse its losses but put in a higher high of nearly $45,400.
Related: Bitcoin centers on $44K as BTC price MACD delivers long-awaited bull signal
BTC/USD likewise avoided a retest of recent support, with $42,000 and lower still yet to see a retest.
Previously
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