Bitcoin

The Price of Bitcoin versus the U.S. Consumer Price Index (CPI) has moved in tandem for the last few years. The US CPI, an essential product for monitoring inflation, fell to 2.5% in August 2024. This was the fifth straight month in which the inflation rate had come down. However, Bitcoin price fluctuation indicates investors’ perceptions about inflation and economic stability.<h2 id="header-0">Bitcoin Price Moves Alongside CPI Trends</h2>As seen from the graph by Lookonchain, the relative price of Bitcoin is positively correlated with the U.S. CPI (YoY). These metrics are directly proportional to each other as revealed in the graph. This was especially realized when inflation rates rose during the year 2021 and so did the price of the Bitcoin. BTC was at its highest in the later part of 2021, which was also the time that the inflation rates were slightly higher.In terms of price change, <a href="https://cryptotale.org/bitcoin-consolidates-eyes-key-resistance-for-next-breakout/" rel="noopener noreferrer nofollow">Bitcoin</a> had very steep inclines between 2020 and 2021. These movements happened when inflation was realized to be on the rise in the U.S. The inflation rate went over 9% in mid-2022, showing that inflation was across the economy. During this period, the price of Bitcoin increased as investors considered it an inflation hedge asset. The link between inflation fears and the increase in the demand for bitcoins became even more apparent as inflationary pressures intensified across the world.The decrease in inflation had the same effect on Bitcoin’s price by slowing its growth. The inflation rates started to decline by the end of 2022, and Bitcoin&#39;s price range became stable, though it was characterized by many fluctuations. The reduction in inflation suggests that Bitcoin&#39;s attractiveness as an inflation hedge might have lessened, but the volatile nature of the asset remains of interest to traders and holders.<a href="https://cryptotale.org/bitcoin-price-and-u-s-cpi-show-strong-correlation-in-2024/" rel="noopener noreferrer nofollow">Read more on Cryptotale.</a>Visit the links for more information <a href="https://cryptotale.org/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/cryptotalemedia" rel="noopener noreferrer nofollow">Twitter </a>| <a href="https://t.me/cryptotale_news" rel="noopener noreferrer nofollow">Telegram </a>| <a href="https://www.instagram.com/cryptotalenews/" rel="noopener noreferrer nofollow">Instagram </a>|

Bitcoin Price and U.S. CPI Show Strong Correlation in 2024

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