Traders around the globe have been awaiting the essential data on inflation which is expected to be released today, but amidst all this, Bitcoin’s price hasn’t shown many fluctuations.
At the time of writing, the price of Bitcoin was recorded at $19,012.60, which is a 0.72% drop from the previous day, whereas Ethereum, the second-largest digital asset, is trading at $1,276.77, a 1.37% drop from the previous day. However, price graphs reveal that Ethereum and seven other significant cryptocurrencies made gains on Wednesday around 9:30 A.M. UTC.
The U.S. Bureau of Labor Statistics will release the Consumer Price Index (CPI). This report measures the rate of price changes among various consumer goods and services to estimate the changes in the country’s economy’s inflation rate. Based on the figures, the CPI report could signal if the Federal Reserve would continue to increase the interest rates consistently in an attempt to cool the economy and suppress the rising inflation.
Given the expected CPI report and its effect on the stock market, JP Morgan said that such a move could mean that the stock market could continue to suffer – similar to what has always happened when the central bank increases the cost of borrowing.
The crypto market including Bitcoin also gets affected every time U.S. equities undergo a hit. However, the Dow Jones Industrial Average, a stock market index of 30 prominent companies listed on stock exchanges in the U.S., recorded a drop of 0.10% or 28.34 points landing at 29,210.85. S&P 500, a stock market index tracking the stock performance of 500 large companies listed on stock exchanges in the U.S., dropped 0.3% or 11.81 points to 3,577.03. This showed that the cryptocurrency market has been comparatively more stable.
Market experts say that cryptocurrencies, including Bitcoin, have displayed significant relativity with the stock market in the past year; however, the relationship between the two seems to have loosened in the past month.