Bitcoin (BTC) fell below $22,000 immediately on September 13 after US inflation data missed estimates.
CPI print will fuel major cryptocurrency
Consensus agreed that 8.1% would be the latest figure, and the overshoot suggested that inflation was not slowing at the pace expected.
US CPI for August beat expectations at 8.3% y-o-y (8.1% expected), but was lower than July’s 8.5%.
Core CPI for MoM is approaching
0.6%, twice the expected 0.3%.
Not what the Fed wants to see.
So 75bps it will be at the next meeting?
— Jan Wüstenfeld (@JanWues) September 13, 2022
However, year-on-year growth was still lower by 0.2% compared to July, maintaining the overall trend of slowing CPI inflation.
However, this was not enough to prevent the crypto crash, and at the time of writing, Bitcoin was below $21,500, down 4% on the day.
As market participants raised stakes with another 75-point and even 100-point rate hike from the Federal Reserve next week, cold feet were increasingly evident ahead of the Wall Street open.
This is just a reality check
— il Capo Of Crypto (@CryptoCapo_) September 13, 2022
“There’s a lot of volatility and a lot of false positives with these events,” Michaël van de Poppe, founder and CEO of trading company Eight, he replied.
“Remember this and avoid overtrading. Lows are being made right now and some consolidation appears to be taking place.”
The US dollar index (DXY), a force that has traditionally been a headwind for cryptocurrencies, has seen a blip bounce in CPI news, it topped 109 for the first time since September 9.
Ethereum Fluctuates As Merger Hype Dies
On altcoins pain for Ether (ETH) continued as existing weakness was compounded by Bitcoin’s plunge.
Despite the incoming Unite ETH/USD and ETH/BTC extended losses as the largest altcoin by market cap failed to capitalize on the surrounding hype.
“Even with the CPI print, it’s always been an area of resistance,” popular Altcoin trader Sherpa he responded.
“The large interaction with this level over the past year is still an area to watch out for.”
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and trading step involves risk, you should do your own research when making a decision.