The latest United States inflation data has positively surprised the stock market and led to a bid for Bitcoin. The Consumer Price Index (CPI) showed that inflationary pressures are declining faster than expected, with CPI coming in 0.1% below market forecasts. This news has resulted in a warm reaction from stocks, with the S&P 500 up 1.5% on the day. Bitcoin, on the other hand, reacted only modestly to the news but remains rangebound. On-chain monitoring resource Material Indicators noted that liquidity is thin, which is contributing to increased BTC exposure from retail investors. Despite a 4% decrease from its recent highs, BTC price action is still impressive and market participants believe that retracements are normal and healthy within the broader uptrend. Analysts suggest that deeper price corrections could still occur before the April 2024 block subsidy halving event. Overall, this news indicates that inflation is slowing down, which is positive for both stocks and Bitcoin.
Summary:
– The latest US inflation data shows that inflationary pressures are declining faster than expected.
– The Consumer Price Index (CPI) came in 0.1% below market forecasts.
– Stocks react positively to the news, with the S&P 500 up 1.5% on the day.
– Bitcoin reacts modestly but remains rangebound.
– Thin liquidity leads to increased BTC exposure from retail investors.
– BTC price retracements are seen as normal and healthy within the broader uptrend.
– Deeper price corrections could still occur before the April 2024 block subsidy halving event.