Crypto prices fall as Bitcoin and Ethereum slide on after CPI inflation data. The cryptocurrency market is going through enhanced volatility following the release of US inflation numbers, which were significantly higher than expected.
Bitcoin is now about 73% cheaper than its previous all-time high of nearly $70,000.
Ethereum hasn’t done well lately, either.
According to CoinMarketCap, Ether is currently trading at $1,206. This is down 6% from yesterday’s $1,347. In the past hour alone, ETH dropped 2%.
As the stock market sinks, crypto stocks are also taking a hit. When the Consumer Price Index (CPI) report showed core inflation hitting an unexpected level of 8.2% for September, this scared investors and caused the market to sink. A higher level of headline inflation at 8.2% discouraged investors even more, as it was higher than economists had predicted.
Yesterday, new rumors sent the price of bitcoin down to $18,100 from its high of $19,500. Earlier in the day, it was at $17,600. The major U.S. stock market averages all fell more than 2%, but are starting to rebound, with the S&P 500 narrowing declines to just 1%.
We can expect that the volatility in the cryptocurrency market could be dependent on events. Recent economic turmoil has caused intense turbulence amid the usual volatility. The reason for this is due to a report from the Bureau of Labor Statistics on CPI numbers.
The Consumer Price Index (CPI) is the measure most commonly used to calculate the current rate of inflation in the United States.
The Consumer Price Index measures the average change over time in what urban consumers spend on a list of basic goods and services.
The unemployment rate for September was 8.2%.
The cryptocurrency market fluctuated as it usually does in the wake of the news, and during this time the BTC coin’s price initially surged before dumping to around $18,200.
The latest data show that more pain is coming in the form of higher interest rates, which are designed to control inflation.