[Bitcoin Now] US March CPI Hits 40-Year High Yet Continues Rising

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Although the U.S. Consumer Price Index (CPI) for March recorded the highest level in 40 years, the representative cryptocurrency Bitcoin price is showing an upward trend as it was close to the forecast.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:22 a.m. on the 13th, the price of Bitcoin was $39,803 (approximately 48.85 million KRW), up 0.8% from the previous day.

The Bitcoin price rose after the March CPI released on the 12th (local time) showed an 8.5% increase compared to the same period last year, which was not significantly different from the forecast of 8.4%. Before the CPI announcement, it had plunged about 6%, but the uncertainty was resolved and the price showed an upward trend. Earlier, on the 16th of last month, the U.S. Federal Reserve (Fed) raised the benchmark interest rate by 0.25%, but Bitcoin prices rose due to relief that uncertainty had been removed.

Cryptocurrency specialized media CoinDesk reported, "After the U.S. CPI for March recorded the highest level in 40 years, Bitcoin prices remained stable, in contrast to the U.S. stock market." Dominic Dantes, a researcher at CoinDesk, also said, "Considering the price crash earlier this week, the current Bitcoin market looks surprisingly calm."

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 44.56, indicating a 'neutral' stage. This is a 0.07 decrease compared to 44.63 (neutral) the previous day. Dunamu’s Digital Asset Fear & Greed Index is divided into stages of 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. The greed direction means increased interest in buying by market participants, while moving toward fear indicates a fear of asset decline causing market exits and a chain reaction of price drops.