BTC Volatility Analysis for CPI, 12th January 2022

Data Analysis

The data released by Bureau of Labor Statistics for Consumer Price Index on 12th January, 2022 has come in at a decrease to 0.3% for December 2021. Compared to the previous release for November 2021 at 0.5%, we can see that prices & inflation is still increasing but slowed month over month.

To see the impact and volatility of BTC's price during the CPI release, we will first observe the difference in volume and price changes on the 4-hours chart, followed by the 15-minutes chart. Change in prices will be be determined by the high and low prices instead of the opening and closing prices.

4-Hours Chart Analysis

In the period prior to the release, the trading volume was 8,166 BTC with prices swinging between 42,640.13 and 43,443.60, representing a swing of 1.85%. Subsequently, the trading volume increased by 34% to 10,949 BTC. Price action ranged from a low of 43,317.00 to a high of 44,078.40, a difference of 1.73%

15-Minutes Chart Analysis

Analysing on a lower time frame to get a more accurate picture, 446 BTC in trading volume was observed prior to the data release. Prices ranged between a low of 43,187.60 to a high of 43,413.00, a 0.52% change. Immediately following, trading volume increased significantly by 454% to 2,472 BTC. At this time, Bitcoin hit a low of 43,334.07 with a high of 43,987.00, a significant change of 1.48%.

About Consumer Price Index

The Consumer Price Index (CPI) measures the monthly change in prices paid by U.S. consumers. The Bureau of Labor Statistics (BLS) calculates the CPI as a weighted average of prices for a basket of goods and services representative of aggregate U.S. consumer spending. The CPI is one of the most popular measures of inflation and deflation. The index is published monthly by the U.S. Bureau of Labor Statistics (BLS).