Bitcoin and stocks rise after the announcement of the highest inflation in 40 years in the US

Key facts:
  • Not since 1982 has there been such a rapid increase in annual inflation in the US.

  • The price of bitcoin recovered 2.2% in the last 24 hours.

The year 2021 became the most inflationary in the last four decades in the US, as can be seen from the Consumer Price Index (CPI) published this Wednesday, January 12. According to figures from the US Department of Labor, inflation in that country was 7% in the last 12 months.

USA did not see such a rapid increase in prices since 1982 (39 years ago). The indicator known as the CPI is a metric that reflects the price behavior of a representative group of products and services in the economy.

Annualized inflation in the US reached 7% for the first time in 39 years. Source: CNBC

According to the information, homes, used vehicles and energy were the goods that became more expensive in the main world economy. This year’s inflation figures come after months of a highly expansionary policy, which has allowed more inorganic money to be issued than ever before in US history.

Despite the results, the price of bitcoin (BTC) reacted positively and broke a rachas bassist who started last January 2. The increase in the price of bitcoin at the time of writing is close to 2% in the last 24 hours, with a price of around USD 43,000.

Some reports They report losses of USD 82 million in 24 hours by traders who bet on the decline in the bitcoin futures market.

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The price of bitcoin is currently hovering around $43,000. Source: CoinMarketCap

Bitcoin correlated: stocks are also in the green

The upward movement was also evidenced in the stock markets, with which bitcoin maintains a close correlation, as reported by CriptoNoticias.

The markets opened in green this Wednesday, after the declarations of the president of the American central bank, Jerome Powell, in a hearing before the senate this Tuesday, January 11. The official confirmed that the plan to control inflation and stabilize the economy without generating traumas would be maintained, which seems to have brought peace of mind to investors.

Some media claim that the Inflation figures remained within what was expected by economists. A Bloomberg report from earlier this week estimated year-on-year inflation at 7.1%.

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Consequently, the markets would be interpreting that the Federal Reserve (FED) will not accelerate the increase in interest rates, which currently remain close to 0%. However, the decision on these adjustments will be announced after the first meeting of the US monetary authority, which will take place on January 26.

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Bitcoin and stocks rise after the announcement of the highest inflation in 40 years in the US

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