Bitcoin parries full CPI attack, recovers above $19,000 level

Bitcoin bucked its shaky initial reaction to the latest Consumer Price Index (CPI) report released on Thursday, rebounding immediately after an expected price drop.

• Bitcoin is approaching $20,000 after the CPI report was released
• Inflation in the United States is at 8.2 percent, the highest since 1982
• BTC’s market cap trimmed by nearly $5 billion

Just moments after the CPI report was released, BTC, as expected, fell all the way to $17,985 to measure a new October low, reports CNBC.

But bitcoin was able to parry the full-blown CPI attack as it recovered above the $19,000 level. According to tracking from Coingecko, at press time, the largest cryptocurrency by market cap was changing hands at $19,863.

The asset increased by 4.2% in the last 24 hours and was able to increase by 1.6% in the last 2 weeks. According to Statmuse, the current trading price is its 4thth highest for the month of October.

Bitcoin records massive outflow after CPI report

Jomfrukrypt’s reaction after the CPI is not only limited in its price movement, as its total market capitalization witnessed a decline.

After September’s inflation numbers were made public, bitcoin experienced increased selling pressure, fueled by speculation about what the Federal Reserve plans to do next to limit economic pressures, the report added.

Source: TradingView

Prior to the publication of the CPI report, BTC’s market cap was $360 billion. After its release, its value dropped $8.48 billion.

Capital outflow means more crypto is pulled from exchanges to wallets. During this event, an asset (bitcoin in this case) becomes scarce and its price goes up.

US inflation in September rose 8.2%, and while only slightly higher than the 8.1% expected, it is the highest level since 1982.

Bitcoin towards the end of 2022

Fluctuations in the bitcoin price at the beginning of this year have led crypto experts to estimate the average price for this month at $20,015 with minimum and maximum prices of $18,109 and $20,587 respectively.

BTC price in November 2022 is predicted to be slightly higher, averaging $20,616. The lowest possible mark that the asset will hit next month is $19,663, while the highest is $21,388.

Incidentally, the cryptocurrency reached its all-time high value of $69,044 on November 10, 2021 after an impressive October run.

Although still miles away from its all-time high, bitcoin is expected to gain more momentum in December, going for a price as high as $22,419. The average price is seen to be $21,234.

BTC market cap at $376 billion on the daily chart | Featured image from Bleacher Report, Chart: TradingView.com