Bitcoin Price Rises $1,000 Within Minutes As CPI Data Gives DXY Fresh 2% Drop
Bitcoin (BTC) surged $1,000 in five minutes before the Wall Street open on Nov. 10 as U.S. inflation and jobs data boosted risk assets.
The CPI is the lowest since the start of 2022
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD climbing to daily highs of $17,782 on Bitstamp.
The pair was just hours from a more than two-year low below $15,700 at the time, taking its 24-hour low to 12.8%.
At the time of writing, BTC/USD circled $17,400 with volatility still rife as US markets opened to digest economic data.
This had come in the form of the consumer price index (CPI) for October, along with unemployment claims.
Both offered a positive surprise, the CPI came in below expectations and unemployment claims above, both suggested that the Federal Reserve’s interest rate hikes were working and that a pivot could come sooner than feared.
Analyzing Bitcoin’s reaction to the Binance order book, monitoring resource material indicators showed the nearest resistance hurdle at $18,500.
“Bear Market Rally Still Alive,” part of accompanying commentary read.
Trading account IncomeSharks was even more optimistic, claiming that $20,000 could return as part of the return to risk assets.
“Bitcoin- Has easy path back to $20,000 as stocks rise and positive CPI numbers,” it told Twitter followers.
At 7.7% year-on-year, the October CPI reading was the lowest since January, an accompanying press release confirmed.
“The index for all goods minus food and energy rose 6.3 percent over the past 12 months. The energy index rose 17.6 percent for the 12 months ending October, and the food index increased 10.9 percent over the past year; all these increases were less than for the period ending in September,” it said.
DXY tanks 2% on economic figures
Meanwhile, an already weakened US dollar index ( DXY ) felt immediate pain on the release, falling over 2% for the second time in recent days.
Related: Analysts Urge Calm as Tether Declines from USD, Bitcoin Loses $17K Rebound
DXY rounded 108.6 at the time of writing, the lowest since September 13.
At the same time, the shares opened markedly higher, the S&P 500 up 3.5% and the Nasdaq Composite Index rose 4.6%.
The popular analyst John Wick, like others, still recommended caution.
“Dollar falls out of up channel due to CPI numbers. This brings relief to assets,” he tweeted along with a DXY chart.
“Just because an up channel is broken doesn’t mean a sustained downtrend always happens. Often another channel can form with a slower consent rate or it can bounce back to the original channel.”
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