• The US Bureau of Labor Statistics issued its Consumer Price Index (CPI) report, which showed a 0.5% increase in January and an annual rate of inflation at 6.4%.
• Options traders had bearish sentiments towards Bitcoin prior to the CPI announcement.
• After the news was released, BTC prices initially tumbled on the six-hour timescale chart before recovering and closing at around $22,400.
US Bureau of Labor Statistics releases CPI Report
The US Bureau of Labor Statistics issued its Consumer Price Index (CPI) report on 14 February, ending days of anticipation and rumors. According to the estimates of economic experts, the CPI increased by 0.5% in January, up from 0.1% in December. The annual inflation rate, however, was much higher than expected, coming in at 6.4% (up from 6.5% in December) despite forecasts of only 6.2%. In addition, the core CPI, which excludes food and energy costs, rose 5.6% from a year ago. This was quicker than the 5.5% predicted and down from 5.7% in the previous month. According to the numbers, the Federal Reserve will probably maintain its hawkish stance with further interest rate hikes possibly being discussed at future Federal Open Market Committee (FOMC) meetings.
Options 25 Delta Skew Pre-CPI
As measured by the Options 25 Delta Skew statistic prior to the release of the CPI report indicates that puts were more popular than calls with investors deeming them more expensive than calls signaling a bearish sentiment before the CPI announcement was made publically available..
BTC’s Volatility After CPI Release
Bitcoin’s volatility has been decreasing as nerves calm after news release according to Coinglass‘ Volatility Index which recorded an observed volatility just over 2%, seemingly decreasing as time goes on post-report release date..
Recovery Post-CPI Announcement
The market’s reaction to the CPI report saw some volatility after its release with Bitcoin prices initially tumbling on a six-hour timescale chart before it jumped by $700 reaching a trading high of $22300 before retracing back down to close near $22400 later that day .
Current Value for 1 BTC
At present 1 BTC is worth approximately $22100 representing a loss over 500 dollars from its initial high post-CPI announcement showing that although there is potential for recovery there is still uncertainty within Bitcoin’s value .