Bitcoin has maintained its position, remaining stable despite a rise in inflation in the United States. Consumer Price Index (CPI) data for September showed an increase of 3.7% year-on-year, exceeding previous expectations of 3.6%. Although inflation is above estimates, Bitcoin prices have remained relatively stationary around $26,800.
The largest and most widely followed cryptocurrency, Bitcoin, has proven to be resilient amidst a volatile economic environment. The latest inflation news in the United States, which exceeded expectations with a CPI of 3.7%, generated little agitation in the cryptocurrency market, marking a change from how it reacted in the past.
The CPI is a key indicator of inflation in the US economy, and analysts had anticipated a 3.6% increase for September.
However, the actual numbers were within that range, with 3.7% inflation slightly exceeding expectations. Additionally, the Core CPI, which excludes more volatile sectors such as food and energy, stood at 4.1%, down from 4.3% in August.
A Relationship That Seems to be Maturing
The relationship between Bitcoin and inflation has been a matter of constant debate. Traditionally, inflation news has had a significant impact on the cryptocurrency market, but in recent months, this trend appears to have changed.
Despite the rise in inflation, Bitcoin has maintained its stability and has remained in the $26,800 area without showing significant price movements looking at CoinMarketCap data. According to popular trader Skew, the market could be pointing to $26,800 as a zone for bulls to turn into support.
CPI later today going to see how LTF structure develops
clear 4H demand area here & $26.8K remains important for control
If buyers can reclaim & hold $26.8K will look for some kind of 4H EMA trend test or reclaim
staying more cautionary till confirmations pic.twitter.com/58BKDZyLBj
— Skew Δ (@52kskew) October 12, 2023
This behavior could suggest that Bitcoin is evolving as a mature investment asset and that investors may be viewing the cryptocurrency beyond its role as a firm hedge against inflation and crisis situations.
As cryptocurrency establishes itself as a legitimate financial asset, its response to economic events may become less predictable and more influenced by a variety of factors.
Despite inflation exceeding expectations, analysts see no reason to expect an immediate change in Bitcoin’s price trend. Investors have largely remained calm and have not shown any significant reaction to the CPI data.
The cryptocurrency market continues to be a space to follow with interest, as it evolves in a changing economic context.