Bitcoin withstood its initial shaky reaction to the latest Consumer Price Index (CPI) report released on Thursday, recovering immediately after an expected drop in prices.
- Bitcoin Approaches $20K Mark After IPC Report Released
- Inflation in the US is 8.2%, the highest since 1982
- BTC market cap shrunk by almost $5 billion
Just moments after the CPI report was released, BTC, as expected, fell as low as $17,985 while posting a new October low, CNBC reports.
But bitcoin was able to parry the full-blown IPC onslaught as it rallied above the $19,000 level. According to Coingecko tracking, at press time the largest cryptocurrency in terms of market capitalization was changing hands at $19,863.
The asset increased 4.2% during the last 24 hours and was able to increase 1.6% during the last 2 weeks. According to Statmuse, his current trading price is his 4the the highest for the month of October.
Bitcoin Posts Massive Outflow After CPI Report
The post-CPI reaction of the original crypto is not just limited to its price movement, as its total market capitalization witnessed a decline.
After September inflation numbers were released, Bitcoin saw increased selling pressure, fueled by speculation about what the Federal Reserve plans to do next to contain economic pressure, the report added.
Before the release of the CPI report, the market capitalization of BTC was $360 billion. After launch, the stock lost $8.48 billion.
The outflow of capital means that more cryptocurrencies are being withdrawn from exchanges to wallets. During this event, an asset (bitcoin in this case) becomes scarce and its price rises.
September inflation in the US increased by 8.2% and, although slightly higher than the 8.1% expected, it is still the highest level since 1982.
Bitcoin towards the end of 2022
Bitcoin price fluctuations earlier this year have led crypto experts to forecast an average price for this month of $20,015 with low and high prices of $18,109 and $20,587, respectively.
The price of BTC in November 2022 is forecast to be slightly higher, averaging $20,616. The lowest possible mark that the asset will reach 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 run in October.
Although still far from its all-time high, Bitcoin is expected to gain more momentum in December, with the price reaching as high as $22,419. The average price is seen to be at $21,234.
BTC market cap at $376 billion on the daily chart | Featured image from Bleacher Report, Chart: TradingView.com