Bitcoin surged to an all-time high of $92,000 after the US Consumer Price Index (CPI) revealed inflation rose to 2.6% year-over-year in October, up from 2.4% in September. 

The latest inflation figures heightened concerns about the Federal Reserve’s monetary policy, hinting at potential volatility in the crypto market.

Will the CPI and Bitcoin Correlation Change Amid Pro-Crypto Sentiment?

Bitcoin’s rally, despite rising inflation, can be attributed to the increasingly positive sentiment in the crypto market after the US election. The market is anticipating significant regulatory shifts in the US financial system. 

At the same time, today’s CPI data came in lower than expected, as previous reports suggested inflation could be higher. 

The Labor Department reported that monthly CPI inflation held steady at 0.2%, matching September’s figure. However, the annual increase of 2.6% marked the first uptick in eight months. 

Core CPI, which strips out volatile food and energy prices, remained unchanged at 0.3% on a monthly basis and 3.3% annually, aligning with expectations.

However, even with today’s Bitcoin rally, an aggressive stance from the Federal Reserve could inject volatility into the market. A potential rate hike could weigh on investor sentiment, impacting the broader financial markets, including cryptocurrencies.

It’s also important to consider the legacy perspective that inflation fears often lead investors to seek assets with limited supply, such as Bitcoin. Additionally, while higher CPI fi

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Author: Mohammad Shahid