[Bitcoin Now] US September CPI Release Causes Fluctuations... Tightening Concerns Push Price to $19,000 Range

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Bitcoin prices are struggling to rebound from the $19,000 range after the U.S. Consumer Price Index (CPI) for September exceeded expectations. Although the U.S. stock market showed gains following the CPI announcement, it turned bearish due to concerns over tightening monetary policy.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 2:27 PM on the 16th, Bitcoin was priced at $19,137 (approximately 27.61 million KRW), down 0.30% from the previous day.

Bitcoin prices experienced a rollercoaster ride influenced by the U.S. September CPI released on the 13th (local time). The September CPI rose 8.2% year-over-year and 0.4% month-over-month, slightly exceeding Dow Jones experts’ forecasts of 8.1% year-over-year and 0.3% month-over-month. The core CPI, excluding energy and food, surged at the fastest pace since August 1982. The September core CPI increased 6.6% year-over-year and 0.3% month-over-month.

With the index surpassing expectations, Bitcoin prices initially plunged to the $18,300 range but then rebounded as the U.S. stock market closed higher, climbing up to the $19,800 range. Some analysts suggested that recent stock declines were excessive and that investors gained confidence that inflation had peaked due to stronger-than-expected inflation data. The tech-heavy Nasdaq Composite Index rose 232.05 points (2.23%) to 10,649.15, the Dow Jones Industrial Average closed up 827.87 points (2.83%) at 30,038.72, and the large-cap S&P 500 Index ended the day 92.88 points (2.60%) higher at 3,669.91.

However, the upward trend reversed within a day. Rising inflation expectations and a decline in the U.S. stock market drove this downturn. According to the University of Michigan, the median expected inflation for the next year rose to 5.1% from 4.7% the previous month. The 5-year expected inflation also increased from 2.7% to 2.9%. This fueled concerns over the Federal Reserve’s (Fed) potential tightening measures. Bitcoin prices have been fluctuating around the $19,100 range since the morning of the previous day.

Meanwhile, cryptocurrency investor sentiment remains in a state of extreme fear. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, has remained at 24 points (extreme fear) for three consecutive days. On the 12th and 13th, it recorded 20 points (extreme fear) for two consecutive days. Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating strong optimism.

This content was produced with the assistance of AI translation services.