Home CryptocurrencyBitcoin Bitcoin Price Drops $1K In 3 Minutes As US CPI Inflation Overshoots

Bitcoin Price Drops $1K In 3 Minutes As US CPI Inflation Overshoots

by SuperiorInvest

Bitcoin (BTC) fell below $22,000 immediately on September 13 after US inflation data missed estimates.

BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView

CPI print will fuel major cryptocurrency

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD quickly falling by $1,000 after August Consumer Price Index (CPI) inflation reached 8.3% year-on-year.

Consensus agreed that 8.1% would be the latest figure, and the overshoot suggested that inflation was not slowing at the pace expected.

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.

Chart of Fed rate target probabilities. Source: CME Group

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.

“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.

US Dollar Index (DXY) 1 hour candlestick chart. Source: TradingView

Ethereum Fluctuates As Merger Hype Dies

On altcoins pain for Ether (ETH) continued as existing weakness was compounded by Bitcoin’s plunge.

Related: Bitcoin and altcoins are rising, but upcoming macro events could cap the rally

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.

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