- BTC price saw a surge to over $16,900 on the back of a less-expected-expected increase in U.S. producer prices.
- Other assets including stocks and altcoins also surged on the release of the bullish inflation data.
The release of better-than-expected inflation data in the U.S. has been fueling a price surge in the Bitcoin (BTC) market that has seen the pioneer cryptocurrency reach over $16,900.
According to a Reuters report, inflation data released by the Labour Department shows that U.S. producer prices increased less than expected in October as services fell for the first time in nearly two years.
The data, which comes after a release last week that also showed a less-than-expected increase in the U.S. consumer price index, offers evidence that inflation was starting and the Federal Reserve could potentially slow its aggressive pace of interest rate hikes.
This has invariably played into the advantage of the BTC market, spurring speculation that the bottom is in for benchmark cryptocurrency which recently fell to a two-year low price of less than $16,000. According to price data at the time of writing, BTC is trading at around $16,730, down 0.44 percent in the last 24 hours.
Before now, the Bitcoin market was rocked by the collapse of the crypto exchange FTX which went down with over $10 billion of investor’s funds. On-chain data from the crypto market intelligence platform Glassnode indicates that investors are withdrawing their BTC from exchanges in droves.
Wall Street and altcoins also surging on the back of easing inflation
Meanwhile, BTC has not been the only asset benefiting from speculation on the Fed pivoting its hawkish monetary policy approach. Other cryptocurrencies, often called alternative cryptocurrencies or altcoins in the crypto space, have also been rallying.
The top 10 biggest cryptocurrencies by market capitalization aside from stablecoins have all seen slight surges. Ether (ETH) saw a 5.09 percent increase to reach a one-week local high of around $1,300, while others including Cardano (ADA) and Polygon (MATIC) also rose slightly.
In the stock market, the Dow Jones index rose 0.17 percent, while S&P and Nasdaq rose 0.87 percent and 1.45 percent respectively. Commenting on the turn, Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia told Reuters that:
The market has been driven by the inflation number that came out a little bit lower than expected and confirmed last week’s number to some degree that we may have rounded the corner on inflation.