The pressure on the cryptocurrency industry caused by the FTX drama seems to be easing after the new U.S. Consumer Price Index (CPI) report revealed better results for October than previously expected, stopping the decline of the largest digital asset, Bitcoin (BTC).
As a matter of fact, immediately after the publication of the inflation data, which recorded the rise of consumer prices by 7.7% in October, Bitcoin added as much as $15 billion to its market capitalization in just 15 minutes, according to the CoinMarketCap data retrieved by Finbold on November 10.
Specifically, the new inflation data demonstrates a drop below 8% for the first time in seven months and the smallest increase since January 2022. Previously, the CPI data report for September recorded an 8.2% price hike, while the expectations for October stood at 8%. Crypto market rejoices
Sparked by the good news, the crypto market immediately started to recover after several days of bloodbath, including the flagship decentralized finance (DeFi) asset Bitcoin, which now boasts a market cap of $335.14 billion – a sharp increase from the $318.18 billion only minutes before. Bitcoin 24-hour market cap chart. Source: CoinMarketCap Related Bitcoin price could drop below $12,000 as bears gain technical advantage Commodities veteran suggests Bitcoin price slump can trigger ‘macroeconomic dominoes’ Over 90% of professional investors believe market sell-off is good for crypto’s future
Commenting on the sudden increase, Will Clemente, lead insights analyst and co-founder of crypto research and proprietary trading firm Reflexivity Research, noted that things would have looked dramatically different for the maiden crypto if it werent for the crisis caused by the FTX saga:
Without the FTX news BTC would be ripping rn prob 22-25k on this lower CPI print. *sigh*— Will Clemente (@WClementeIII) November 10, 2022
Notably, Bitcoin had sunk to its lowest point since November 2022 during the previous 24 hours, trading at $15,709. However, after the CPI report came out, it is now changing hands at the price of $17,452, which represents a 0.74% decline on the day – a dramatic slowdown of its downward trend.
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