[Bitcoin Now] Rising Trend Follows New York Stock Market Despite Unexpected US CPI

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The U.S. Consumer Price Index (CPI) for September exceeded expectations, yet the leading cryptocurrency Bitcoin is showing strength. Although the U.S. stock market started in a downturn, it closed with gains in the 2% range, which is interpreted as supporting the upward trend.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 9:05 a.m. on the 14th, Bitcoin was priced at $19,386 (approximately 27.72 million KRW), up 1.12% from the previous day.

Bitcoin's price rose despite the U.S. September CPI recording higher-than-expected levels, driven by the upward trend in the New York stock market, which tends to move in tandem. According to the U.S. Department of Labor, the September CPI increased 8.2% year-over-year and 0.4% month-over-month. These figures slightly exceeded the Dow Jones experts' forecasts of 8.1% year-over-year and 0.3% month-over-month. The core CPI, excluding energy and food, surged at the fastest pace since August 1982. The September core CPI rose 6.6% year-over-year and 6.3% month-over-month.

The U.S. stock market closed higher despite ongoing high inflation, which has strengthened the Federal Reserve's (Fed) aggressive tightening stance. Analysts suggest that recent excessive stock price declines and stronger-than-expected inflation have led investors to gain confidence that inflation has peaked. On the 13th (local time), the tech-heavy Nasdaq index rose 232.05 points (2.23%) to close at 10,649.15, the Dow Jones Industrial Average increased 827.87 points (2.83%) to 30,038.72, and the large-cap S&P 500 index closed 92.88 points (2.60%) higher at 3,669.91.

Cryptocurrency specialized media CoinDesk commented, "Bitcoin and Ethereum plunged sharply after the CPI announcement but then started to rise again," adding, "The stock market showed a similar pattern."

Cryptocurrency investor sentiment also revived. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, rose 4 points from the previous day to 24 points (extreme fear). Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating strong optimism.