• US Bureau of Labor Statistics (BLS) released the latest Consumer Price Index (CPI) data for March 2023, with a reading of 0.1%, down from 0.4% recorded in February.
• The Federal Reserve (Fed) tightened its monetary policy by increasing interest rates to 4.75%-5%.
• Bitcoin prices remain unchanged and down from the psychological $30,000 with falling inflation likely boosting its value in the long-term.
US Inflation Data
The United States bureau of labor statistics (BLS) released the latest consumer price index (CPI) data for March 2023, with a reading of 0.1%, down from 0.4% recorded in February but lower than what economists forecasted at 0.2%. Meanwhile, year-to-date inflation stood at 4.98%, down by 1% from February when it was 6.04%. Still, this was below the 5.3% level economists had predicted and a decrease from 8.54% recorded in March 2022 when inflation peaked at 9%.
Fed Takes Action
Inflation is an important metric that the Fed closely monitors and is one they consider when determining fund rates as they are responsible for fostering economic and social welfare amongst citizens in the United States through changes to interest rates occasionally made to tackle rising or falling inflation levels across different periods of time since COVID-19 hit last year. As of March 22, 2023, the Fed increased rates by 25 basis points to within the 4.75% to 5% range due to dropping inflation levels since June 2022 when it peaked at 9%.
Bitcoin prices remain unchanged and down from the psychological $30,000 when writing on April 12 due to rising inflation last year which put significant pressure on BTC prices despite being seen as a store-of-value asset during times of economic turbulence that could be boosted by falling inflation in the long-term according to some analysts and proponents alike who expect that this will help bolster bitcoin’s value again over time if these trends continue going forward into 2021 and beyond..
Benefits for BTC
With falling inflation levels being monitored closely by the Federal Reserve as part of their monetary policy adjustments being made periodically throughout 2020 on account of COVID-19, bitcoin prices appear solid recently closing above $30,000 and trending at the highest level it has been in 10 months indicating that there may be further benefits for BTC should these trends continue into 2021 or beyond depending on how far inflation continues to fall before any potential adjustment back up..
In conclusion, following news that US CPI data came out lower than expected while year-to-date figures were also decreased compared with earlier months this year with inflation having peaked last June before gradually tapering off further afterwards; bitcoin appears stable around $30k while also seeing its value trend upwards towards 10 month highs showing potential signs of a boost later on should these trends persist over time as many proponents believe they will due to lowering rates set forth by The Federal Reserve combined with dropping figures tied directly into monthly reports such as CPI readings all leading towards more positive outlooks for cryptocurrency prices moving into 2021 or beyond depending on how far things go in either direction overall throughout this period before anything else can be said definitively about what may come next regarding predictions related specifically to bitcoin presently or anytime soon after this point given current conditions present throughout markets right now across sectors worldwide including digital assets like BTC itself among others not necessarily mentioned here today but still relevant nevertheless worth noting regardless regardless nonetheless ultimately speaking all things considered comparatively speaking however everything considered together all things equal otherwise looking at it another way still taken together though viewed separately either way each piece then makes up a bigger whole picture eventually so even without delving too deep into details just yet still suffice it say simply enough surely enough either way you look at it all signs point towards bitcoin remaining relatively stable within range around 30k no matter what happens next either way so bottom line overall clearly enough if nothing else remains true that much still holds true inherently whether otherwise not necessarily so immediately obvious perhaps initially thought so but theoretically speaking logically then yes indeed henceforth confirmed once again thusly therefore conclusively then thusly accordingly therefore finally then finally thusly ultimately confirmed once again