The latest report on the Consumer Price Index (CPI) shows a higher-than-expected increase, leading to a significant drop in Bitcoin prices. The CPI, which is a key indicator of inflation trends, rose by 0.8% in April, far exceeding the predicted 0.2%, causing investors to shift their attention from Bitcoin to traditional finance. This shift is credited with causing the Bitcoin price drop, as investors look to hedge against potential inflation.
Bitcoin, the world’s largest cryptocurrency, has previously been seen as a hedge against inflation. However, the recent surge in the CPI has unnerved investors, leading to a sell-off in the Bitcoin market. The price of Bitcoin fell by about 10%, from around $54,000 to $47,000, following the release of the CPI data. This demonstrates the volatility of the crypto market and its sensitivity to macroeconomic indicators such as the CPI.
