On Thursday, cryptocurrency and stocks rose after the October CPI report indicated that US inflation may finally be slowing.
According to the most recent Bureau of Labor Statistics report, the consumer price index increased by 7.7% over the previous year. While significantly above the Federal Reserve’s 2% inflation target, it is a significant improvement over September’s 8.2% figure.
The bullish print provides the markets with some much-needed relief after they were battered in 2022 as a result of the Federal Reserve’s historically rapid monetary tightening. Jerome Powell, the head of the central bank, has stated repeatedly that he intends to keep raising interest rates until US inflation, which has reached multiple 40-year highs this year, is under control.
The positive print provides the markets with some much-needed comfort after they were battered in 2022 as a result of the Federal Reserve’s historically rapid monetary tightening. Jerome Powell, the head of the central bank, has stated repeatedly that he intends to keep raising interest rates until US inflation, which has reached multiple 40-year highs this year, is under control.
Although some have compared Bitcoin and other rare cryptocurrencies to inflation hedges, the market for digital assets has had a strong two-year correlation with stocks. Thursday saw gains of 4% for the S&P 500 and 5% for the Nasdaq.
While the entire cryptocurrency market hit new yearly lows this week due to the ongoing collapse of industry behemoth FTX, the crypto exchange founded by Sam Bankman-Fried, Bitcoin still managed to maintain relative stability and outperform stocks in Q3.
FTT, the token for FTX, is down 2.2% today after dropping more than 90% over the previous week.
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