- U.S. inflation hits new 40-year record at 8.5%.
- Bitcoin traded green above $40,500 as the index reading came above market expectations.
- Gasoline prices increased by 18.3%, while energy rose 32% over the last year.
Bitcoin has been holding on above the $40,000 mark as U.S. inflation rose to yet another 40-year high of 8.5%, according to data released by the U.S. Bureau of Labor Statistics (BLS) Tuesday morning.
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Inflation numbers for last month, scored by the Consumer Price Index (CPI), denoted the biggest annual jump in prices since 1981. The 8.5% inflation rate came above market expectations and surpassed the 8.4% level last seen in January 1982.
The bitcoin price held its ground above $40,000 as U.S. CPI numbers were released. The peer-to-peer (P2P) digital currency trades around $40,500 at press time, denoting a 2.5% daily gain.
Bitcoin saw a sharp sell-off on Monday as it dropped below the $40,000 level. The digital money dropped from $42,400 to $39,200 yesterday in a 6.19% drop, according to TradingView data. The relief rally now calms traders as the key $40,000 level is maintained.
Bitcoin decoupled from the Nasdaq this morning as inflation numbers were revealed. The duo, which is said to have a high correlation, denotes opposite results at press time as the Nasdaq 100 index trades on a 2.35% loss.
Gasoline, shelter and food were the biggest contributors to the new all items CPI reading, BLS said. Gasoline prices alone increased by 18.3% in March and accounted for over half of the all items monthly increase. Energy rose 32% over the last year, while the food index saw the largest one-year increase since May 1981, at 8.8%.
The all items index denoted the largest 12-month increase since the period ending December 1981, whereas the all items less food and energy index saw the largest 12-month change since the period ending August 1982, at 6.5%.
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