Bitcoin, stocks swing as markets react to CPI data

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  • Bitcoin price was trading sideways after hitting a high of $22,300, while major US indices were also down.
  • The market reaction comes after warmer-than-expected inflation data for the first month of 2023.
  • US CPI rose 0.5% in the month and 6.5% year-to-date.

Bitcoin was above $22,000 at around 11:00 AM ET, with the flagship cryptocurrency swinging from a high of $22,300 as the broader crypto market mirrored Wall Street following Tuesday’s US inflation data.

Across crypto, Ethereum previously ticked near $1,570 on major exchanges, rising up to 5% before cooling to the upside to see ETH trading near $1,540 at the time of writing. A similar picture holds for Binance Coin, with BNB trading near $300 with gains of around 3.5% before losing some gains.

Action in US stocks was also green in the premarket ahead of a broader reaction to consumer price data released on Tuesday, with major indices seen trading lower.

The S&P 500 rose about 0.7% but turned negative after the latest consumer price index (CPI) data from the US Bureau of Labor Statistics. Has shown Inflation has risen in the last one month after declining for consecutive months. The S&P 500 was down 0.6% at the time of this report.

The outlook was similar for the Dow Jones Industrial Average and Nasdaq Composite, which were down 0.8% and 0.6%, respectively.

Markets react to January CPI data

On Tuesday morning, US government data on inflation showed consumer prices rose 0.5% in January and 6.4% over the past 12 months, beating forecasts of 6.2%.

Even for the core CPI, which leaves out the more volatile food and energy components, the reading was up 0.4% in January and 5.6% year-on-year.

Thus far as data showed inflation rose in the first month of 2023, which was hotter than economists had expected, Wall Street reacted low to the news as investors wondered what it meant for the Fed’s interest rate path. , let’s weigh it. Market observers say this could signal a higher end to the Fed’s earlier stated long path.

Tim Seymour, CIO of Seymour Asset Management Certainly thinking It could be on the cards now.

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