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Bitcoin Just Surged to $24,000. Here's Why

Wed, 08/10/2022 - 12:56
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Alex Dovbnya
Bitcoin experienced bout of volatility due to lighter-than-expected inflation data
Bitcoin Just Surged to $24,000. Here's Why
Cover image via U.Today

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The price of Bitcoin (ETH), the leading cryptocurrency, surged to an intraday high of $24,010 on the Bitstamp exchange at 12:48 a.m. UTC. Ethereum (ETH) and other top altcoins also spiked sharply higher. 


The most recent spike came after cooler-than-expected inflation data. The headline consumer price index (CPI) for the previous month increased by 8.5%, which is below analysts' consensus estimate of 8.7%. Prior to that, it would come in hotter than expected over the course of 10 consecutive months. Month-over-month (MoM) inflation was 0%, which marks the biggest MoM decline in seven decades.

Significant declines in gas prices and airfare were mainly responsible for the cooler-than-expected July CPI print. At the same time, grocery prices, electricity, and rent remain on the rise.  

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Dow futures soared by more than 400 because of the downside inflation surprise.

The most recent CPI data means that the U.S. Federal Reserve may now slow down the pace of rate hikes.

While the most recent CPI data is a sign for the U.S. central bank, it is still unlikely to dramatically affect its current policy. According to Barclays' Michael Pond, this was a "necessary" print for the Federal Reserve, but inflation has to come down much more. "It's in the right direction, but we are certainly not there yet," Pond said.

Despite bouncing off recent lows, the largest cryptocurrencies remain deep in bear market territory. Bitcoin and Ethereum are still down more than 60% from their respective peaks.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at