[Bitcoin Now] Bitcoin Gains 5% on US CPI Slowdown News... Investor Sentiment Recovers

[Asia Economy Reporter Lee Jung-yoon] As the increase in the US December Consumer Price Index (CPI) slowed down, the price of the representative virtual asset Bitcoin surged.

[Photo by Reuters·Yonhap News]

According to the global virtual asset market status relay site CoinMarketCap, as of 9:04 AM on the 13th, the price of Bitcoin was recorded at $18,882 (approximately 23.35 million KRW), up 5.34% compared to the previous day. It briefly reached the $19,000 level but the rate of increase slowed. The $18,800 level was recorded for the first time since November 9 last year.

The price of Bitcoin rose as the US December CPI showed a decline compared to the previous month and a reduced increase compared to the previous year, easing inflation concerns. According to the US Department of Labor, the December CPI rose 6.5% compared to the same month last year, the smallest increase in 14 months since October 2021. Compared to the previous month, it fell by 0.1%, marking the first monthly decline in CPI since May 2020.

Buoyed by these indicators, concerns about aggressive tightening by the Federal Reserve (Fed) also diminished. There is speculation that the Fed may reduce the rate hike to 0.25 percentage points at the regular Federal Open Market Committee (FOMC) meeting in February.

Investor sentiment in virtual assets also improved. According to the virtual asset data provider Alternative, the Fear & Greed Index, which expresses investment sentiment as an index, rose by 1 point from the previous day to 31 points (fear) on the day. Alternative’s Fear & Greed Index means that a score closer to 0 indicates extreme fear and pessimism about investment, while a score near 100 indicates optimism.

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