Better-than-expected US inflation should have lifted Bitcoin. Here’s what happen

livemint.com:

The slowdown in US inflation data for October month was better-than-expected which shifted the gear in crypto markets for a brief moment. Everything looked rosy and optimistic, Bitcoin surged by around 4%, and Ethereum along with other cryptos too picked up on the day when inflation data was announced. But then came Friday, and the scenario changed drastically as cryptocurrencies are in a bloodbath currently. Bitcoin which is the largest crypto has erased its $17,000 mark. So far this year, past trends showed a correlation between Bitcoin's performance with US inflation data. The latest print of the US consumer price index should have led to an upside for Bitcoin, however, that is not the case. Why? The answer is the crypto exchange FTX.

On Thursday, the US announced its consumer price index inflation data for October month. US inflation has slowed down for the fourth month at 7.7% --- reaching the lowest level since January this year. The latest slowdown is even better than expected. Earlier, in June, the US consumer price index made its largest increase in 40 years during June month at 9.1%.

On the same day of inflation data, Bitcoin gained traction to the point the crypto even crossed the $18,000 mark.

According to Anurag Agrawal, Principal, Investment Strategy at Kunji, in the past, when inflation was very high, a higher CPI from one month to the next caused the crypto markets to crash.

As per Kunji's data, when inflation increased to more than a 40-year high in June at 9.1% --- which was larger than expected --- Bitcoin performed higher. The same was the case in July month --- when inflation came to 8.5% slowing down more than expected --- Bitcoin gained. A similar pattern was seen in Bitcoin when inflation came in