Bitcoin jumped above US$19,000, its highest level since November 2022, as US inflation fell to 6.5%, raising analysts’ expectations that the Federal Reserve will increase interest rates by only 0.25% at its meeting later this month.
According to CoinMetrics, the price of Bitcoin soared 8.4% to $19,013 on Jan 13.
The price hit its highest level in more than two months after the US posted a slowdown in the consumer price index (CPI) in December. This should encourage the US central bank to slow the pace of interest rate increases, said analysts.
The US Labor Department said headline CPI, which includes food and energy prices, rose by 6.5% in December from a year earlier. That slowed from a 7.1% increase in November and was the smallest gain since October 2021. The figures are in line with analysts’ expectations.
Headline CPI posted a month-on-month decline of 0.1%…
