Bitcoin's price falls after new data shows jump in US consumer prices

Bitcoin fell sharply during Tuesday morning's trade after new data released by the U.S. Labor Department showed a jump in consumer prices — a slight confutation of the narrative that the cryptocurrency does well in the face of higher inflation. 

The consumer price index or CPI increased 0.9% last month, representing a jump of 5.4% relative to June 2020, according to the new data.

Bitcoin fell as the data was announced from highs above $33,000 to slightly above $32,000, a percentage decline of 2.35%

Proponents of bitcoin, including famed investor Paul Tudor Jones, have backed bitcoin as a hedge against inflation and aggressive US monetary policy, decried as "money printing."

Still, bitcoin doesn't appear to always trade as a safe haven asset or hedge against inflation. 

About Author

Frank Chaparro covers the intersection of financial markets and cryptocurrency as Editor-at-Large. Since joining the publication in 2018 as its first reporter, he has played a key role in building The Block into a leader in financial journalism and research. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected]