Bitcoin breaks above $24,000 as u.s. inflation dips to 8.5%

Crypto markets are in green on Wednesday on the back of a drop in U.S. Inflation numbers for July 2022. Consumer Price Index data showed that inflation dipped to 8.5% in July, signaling the first drop in U.S. inflation since April 2022. 

The 8.5% level is down from the 9.1% reported in June. Technically analysts had expected a number around 8.7% or greater, per reports.

Consumer Price Index is a tool leveraged by economists to determine the average changes in prices paid by consumers for goods and services over a period of time. This measurement is commonly synonym with inflation in any given economy. 

Usually, CPI numbers translate to a higher rate of inflation and vice versa.

Wednesday’s report of reduced inflation numbers could also incentivize the U.S. Federal Reserve to adopt a less aggressive rate hiking strategy. The agency announced a hike of 75 basis points at the last meeting, EthereumWorldNews reported.

At the time, crypto assets like Bitcoin struggled to maintain gains as back-to-back hikes by the Federal Reserve supposedly caused fear and panic throughout the digital asset market.

Crypto Market Pumps As Ethereum And Bitcoin Go Green

Crypto asset prices reacted to the CPI report with pumps in token prices. At press time, both market leaders Bitcoin (BTC) and Ethereum (ETH) have surged more than 3%, minutes after the inflation numbers were released. 

BTC broke above the $24,000 level after struggling to climb above the same range earlier in the week. ETH also showed strength, pumping over $1800 as the Merge approaches.

Technical analyst Will Clemente predicted that on August 8 that the CPI report would play a determining role in a continued short-term risk-on bear rally.