According to the most recent Consumer Price Index (CPI) report, which demonstrated that inflation in the US is still a big problem, Bitcoin achieved a price of over $26,000, which hasn't been seen since last summer.
In the year prior to February, the CPI increased by 6.0%, which was in line with economists' projections. This index tracks changes in pricing for a variety of goods and services. Other tokens like Dogecoin and Solana also increased in value, and Ethereum and Bitcoin both had considerable increases of 5% and 4%, respectively.
While falling somewhat since reaching a 41-year high of 9.1% in June of last year, inflation is still much above than the Federal Reserve's goal level of 2%. Prices increased 0.4% from January to February on a monthly basis, with 70% of the increase in the CPI coming from food, leisure activities, and housing. Particularly, the cost of housing increased by 0.8% from January to February, representing an 8.1% increase from a year earlier, while the cost of electricity decreased by 0.6% monthly.
The Fed rapidly raised interest rates to fight inflation, which increased the cost of borrowing for households and companies and cooled the economy. After raising interest rates from almost zero in March of last year, the Fed has brought them to its goal range of 4.50% to 4.75%, which is the highest level since October 2007. The Federal Reserve predicted in December that interest rates would rise this year as high as 5.1%. Recently, Fed Chairman Jerome Powell also stated that because of the stronger-than-expected economic data, rates would probably need to increase.