Bitcoin Price Prediction – US Inflation Hits 40 Year High, Fuels Big Rate Hike Sentiment
Most cryptocurrencies experienced a bloodbath during the US session, with a dramatic selling trend following the release of US CPI figures. Recalling our Asian session Bitcoin price prediction, Bitcoin has traded dramatically bearish, losing more than 3% to trade below $19,000.
In September, a key measure of consumer prices in the United States hit a 40-year high, highlighting persistent, higher inflation that is putting pressure on households and driving the Federal Reserve toward another large interest rate hike.
September 2022 marked the third consecutive month in which annualized consumer price inflation in the United States was less than 9%. It was the lowest rate since February, but it was still higher than the 8.1% predicted by the market.
The core CPI increased by 0.6% over the previous month for the second time in three months. The Consumer Price Index (CPI) rose 0.4% month-over-month and 8.2% annually.
The annual rate also remained significantly above the US Federal Reserve's 2% target, indicating that policymakers are likely to maintain their hawkish rhetoric and rapidly raise interest rates. The Consumer Price Index in the United States was 296.808 in September, compared to 296.171 the previous month and 296.43 points expected by the market.
In response to stronger-than-expected economic figures, policymakers have launched the most vigorous tightening campaign since the 1980s. Although the job market and consumer demand have shown remarkable resilience thus far.
In September, the unemployment rate fell to a level not seen in half a century, and companies have continued to increase wages in order to compete for the labor they need to meet consumer demand.
The CPI figure, following on the heels of last week's
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