Bitcoin (BTC), the largest cryptocurrency by market cap, hit the $26,000 level with a 5% price increase right after the U.S. Bureau of Labor Statistics (BLS) announced the Consumer Price Index (CPI) for February.
The CPI increased 6% YoY, hinting at a steady inflation rate.
- With the 5% price increase, Bitcoin reached its highest value in the last nine months.
- Other tokens, including Ethereum (ETH), Dogecoin (DOGE), and Solana (SOL), also increased in value after the February CPI was announced.
- The CPI met the economists’ expectations in February and showed signs of easing, though it hit a 41-year high in June 2022 with 9.1%.
- The highest monthly increases in the CPI were in food, recreation services, and shelter, making up 70% of all the monthly gains.
- The BLS announced the CPI as 6.4% in January.
- The Federal Reserve (Fed), the central banking system of the U.S., carried out an aggressive interest rate hike policy over the last months to ease inflation and lower it to its target of 2%.
