Investors must be excited after seeing the release of the Consumer Price Index (CPI) report of the United States (US) yesterday which has managed to give a surge in the price of the mother of all cryptocurrencies Bitcoin (BTC) and also Ethereum (ETH).
This is due to the US inflation rate showing a decrease for 5 months in a row has pushed the value of the US dollar in the market.
If observed, BTC climbed 4% at the price zone of $17,809 in the last 24 hours while ETH gained 6% at the level of $1,321 and not forgetting also Ripple (XRP), Dogecoin (DOGE) and Polygon advanced 4% each.
Explained, CPI data functions as a measurement of the rate of change in the price of goods and services that will be used as a metric for calculating inflation in the economy.
This month's report saw inflation easing as the November reading dropped to 0.1% compared to October's 0.4%.
For the past few months, the Federal Reserve (Fed) has been raising interest rates aggressively to control inflation, but its statement last month may have a positive impact on crypto as the Fed is expected to reduce rate hikes at its latest meeting.
The next interest rate hike is expected to be at 50 basis points compared to the previous rate of 75 basis points.
It is understood that small businesses, crypto markets and stocks have been affected when interest rates are constantly rising which is the cause of increased borrowing costs from banks while most individuals prefer to keep cash in savings accounts.
