Bitcoin Minute for May 2023
The CPI report for April 2023 was released earlier today showing that overall inflation is slowly calming down however services and food cost remain sticky.
The report came in lower than estimates, The Consumer Price Index climbed 4.9% in April from a year earlier, less than the 5% economists in a Bloomberg survey had expected. The news initially Brought Bitcoin prices higher as the news was expected to do. In the half hour following the release of the CPI Bitcoin gained roughly $500. However, it sold off swiftly between the 12:30 and 1:30 EST, roughly matching the sell off in the S&P 500.
According to a tweet made by Whale Wire the drop was caused by the US government selling off 9,800 BTC worth approximately $264 million. This caused a sudden drop in the price of Bitcoin as FUD (fear, uncertainty, doubt) caused traders to sell their long positions. We will dive into this topic on our video, (Bitcoin Minute).