Bitcoin Revisits $50K as U.S. Inflation Hits 39-Year High
Bitcoin jumped higher on the CPI data, trading like a macro asset once again
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The Labor Department reported Friday that the Consumer Price Index had reached a 39-year year-over-year growth peak of 6.8%, adding 0.8% in November.
While the figure was in line with analysts’ expectations, this still pushed the price of Bitcoin roughly 2.5% higher. The largest cryptocurrency has once again surpassed the psychologically important level of $50,000 after dipping to an intraday low of $47,440 earlier today on the Bitstamp exchange.
Nasdaq and S&P 500 e-mini futures are also in the green.
A month ago, Bitcoin hit its current all-time high of $69,000 on hotter-than-expected inflation data. However, the cryptocurrency failed to hold onto these gains, currently trading down 28% from the peak.
The CPI report will likely influence the Federal Reserve’s tapering policy. Fed officials are scheduled to have a two-day meeting next week.