Bitcoin has jumped past $50,000 for the first time and US inflation data is at its highest in nearly 40 years. The question now becomes what will happen to Bitcoin if there are more signs of a recession?
The “bitcoin s&p 500 correlation chart” is a chart that shows the relationship between bitcoin and the S&P 500. The data on this chart has been updated daily with the latest price of bitcoin and the opening price of the S&P 500 index.
On December 10, Bitcoin (BTC) rocketed beyond $1,000 in a matter of seconds after the US Consumer Price Index (CPI) data revealed that inflation in November was higher than expected.
1 hour candle chart of BTC/USD (Bitstamp). TradingView is the source of this information.
The November CPI is in line with predictions.
As of Friday, statistics from Cointelegraph Markets Pro and TradingView showed BTC/USD trading at $50,132 on Bitstamp.
The pair has already reached its highest level in over 24 hours one hour before Wall Street opened.
CPI was eagerly anticipated by both crypto and conventional financial specialists, with predictions of at least a 6.7 percent year-on-year growth in November, if not more than 7%. In the end, the figures largely matched cautious estimates, hitting 6.8%.
CPI falls short of forecasts
Bullish
all markets are exploding
10 December 2021 — Alex Krüger (@krugermacro)
Despite the outcomes, CPI inflation is at its highest level in over 40 years.
Data from the Consumer Price Index in the United States. Source: Bureau of Labor Statistics of the United States of America
Still stuck in the middle of nowhere
Bitcoin’s short-term gains did not last long, and at the time of writing, BTC/USD was back under $50,000.
In 2022, ‘deflationary pressures’ might propel Bitcoin to $100K and gold to $2K, according to a Bloomberg analyst.
Analysts earlier believed that the biggest cryptocurrency remained locked in a range with no clear upward bias, needing a break over $53,600 to change.
Yes, there has been a lot of volatility in the #BTC market lately.
In fact, $BTC has been threatening to break through this red support all week, but has yet to do so.
BTC has risen over the red line once again.
#Crypto #Bitcoin pic.twitter.com/739hdAooiI Still holding till further notice#Crypto #Bitcoin pic.twitter.com/739hdAooiI
December 10, 2021 — Rekt Capital (@rektcapital)
The CPI event had little effect on altcoins, with Ether (ETH) still down 1.3 percent in the last 24 hours.
Only Terra (LUNA) managed to gain ground on the day, out of the top ten cryptocurrencies by market capitalization.
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The “rate of inflation 2020” is a term used to describe the rate of change in prices. The “rate of inflation 2020” is currently at 2.9%. This means that if you have $100, you will only be able to buy $102 worth of goods and services.
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