Inflation is rising in the US. Bitcoin price is falling

We learned new inflation data in the US. How did the market react to them? In quite a surprising way.

Inflation in the US is rising, but not completely

Inflation in the US has stopped falling. What's more: it's growing. According to the new reading, CPI was as much as 3.5% in March. In February it was 3.2%, and in January – 3.1%.

What does it mean? The fact that Fed board officials have a very tough nut to crack. On the one hand, their reports show that they want to make as many as three interest rate cuts this year. The problem is that Jerome Powell has been saying for a long time that the first cuts will take place when he and his people become convinced that inflation is falling permanently. New data shows that this is not the case. Although not entirely.

Of course, the above percentages refer to CPI inflation. For central banks, it is not crucial because it takes into account energy and food prices, which the Federal Reserve has no influence on. Core inflation is key in this area. This rate remains unchanged at 3.8%. This is not news to which we should open champagne. This shouldn't worry us much either.

Bitcoin price falls and then rises

In response to the new news, the bitcoin price dropped below $68,000. However, it started to grow quickly and today 1 BTC costs USD 70,500, which means a jump of 1.73% per day and 7.6% within 7 days.

The Bitcoin Fear and Greed Index is 76, which means extreme greed (“Extreme Greed”).

Ether fell to $3,420, but today it is trading for $3,563. This, in turn, means an increase of 8.2% during the week and approximately 1% since yesterday.

As you can see, the new inflation data did not scare investors. In addition, halving will occur online in a few days.