The United States Consumer Price Index (CPI) data exhibited conflicting inflation indications on March 14, driving Bitcoin (BTC) over $26,000. The announcement of the Consumer Price Index for February triggered an unexpected wave of turbulence.
Year-over-year inflation rose by 6%, while inflation from month-to-month came in at 0.4%, which was about what was predicted. The 0.5% rise in prices was somewhat above expectations for the period excluding food and energy.
Price Broke Crucial 200-period MA
In the face of a continuing financial crisis, Bitcoin seemed to respond favorably to the data, allowing the Federal Reserve to avoid being stuck between sticking with lower interest rates and higher inflation. As CPI is known to cause wild swings in BTC price, the direction of BTC/USD is keenly watched by investors from all sectors.
Earlier, traders were parking a lot of cash to sell at $25,000 and above before the CPI report was released, making that level the primary target of bulls on shorter time periods.
The $26,150 peak reached locally for Bitcoin in 2023 is the highest level seen since June 2022. In weekly time frames, the Bitcoin price broke over the crucial 200-period moving average that has been acting as resistance. The crypto market rallied on the CPI statistics with Ethereum crossing the $1700 mark.