Bitcoin jumps past $50K as US CPI data shows highest inflation in nearly 40 years

Bitcoin (BTC), which surged to over $1,000 in a matter of seconds on December 10, was driven by the United States Consumer Price Index data (CPI), which showed that November inflation was worse than expected.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

CPI November meets expectations

Cointelegraph Markets Pro and TradingView data showed that Bitcoin/USD was at $50,132 on Bitstamp when the data became publicly available Friday.

The pair was already at its highest point in more than 24 hours, an hour before Wall Street opened.

Both traditional and crypto finance analysts eagerly anticipated the CPI. Analysts favored at least 6.7% year-on–year growth for November and even more than 7%. The numbers came in at 6.8%, which was broadly consistent with conservative estimates.

CPI lower than expected Bullish all marks popping
— Alex Kruger (@krugermacro) December 10, 2021

However, the results show that CPI inflation is at its highest level in nearly 40 years.

U.S. CPI data chart. Source: U.S. Bureau of Labor Statistics

It’s still a wide range

Bitcoin’s short-term success did not last, with BTC/USD trading at below $50,000 as of the writing.

Related: Bitcoin could reach $100K and gold $2K by 2022 due to ‘deflationary factors’ — Bloomberg analyst

Analysts previously stated that the largest cryptocurrency was still stuck in a range without any visible upside bias. This would require a break above $53,600 for it to change.

Yes, there’s been a decent amount of volatility for #BTC recently In fact, $BTC has been threatening to lose this red support throughout the week but failing to confirm a breakdown BTC has returned above red yet again Still holding here until further notice#Crypto #Bitcoin pic.twitter.com/739hdAooiI
— Rekt Capital (@rektcapital) December 10, 2021

Altcoins did not react to the CPI event. Ether (ETH), however, was still 1.3% lower over the last 24 hours.

Only Terra (LUNA), out of the top 10 cryptocurrencies, managed to make a modest gain over the course of the day.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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