Bitcoin (BTC) crashed below $22,000 instantly on September 13 after US inflation data missed estimates.
CPI Printing Triggers Major Crypto Drop
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair quickly fell $1,000 after August’s Consumer Price Index (CPI) inflation stood at 8.3% year-on-year.
Consensus had 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 YoY coming in above expectations at 8.3% (expected 8.1%) but lower than in July with 8.5%.
MoM core CPI coming in hot at
0.6% twice as high as the expected 0.3%.Not what the Fed wants to see.
So 75bps it is at the next meeting?
US CPI for August, year on year, came in above expectations at 8.3% (8.1% expected), but was lower than July’s 8.5%.
Month-on-month core CPI came in at 0.6%, double the expected 0.3%.
Not what the Fed wants to see.
So 75bps at the next meeting?
However, compared to July, year-on-year growth was still 0.2% lower, maintaining the general trend of decelerating CPI inflation.
Nevertheless, this was not enough to prevent the cryptocurrency from falling, and at the time of writing, Bitcoin was below $21,500, down 4% on the day.
As market participants increased bets on a further 75 basis point and even 100 basis point rate hike by the Federal Reserve next week, cold feet were becoming more noticeable ahead of the Wall open. Street.
This is just a test of the real
— il Capo Of Crypto (@CryptoCapo_) September 13, 2022
“There’s a lot of volatility around these events and there’s a lot of spoofing going on,” answered Michaël van de Poppe, founder and CEO of the trading company Eight.
“Remember that and avoid overtrading. Right now the lows are taken and it looks like some consolidation is taking place.”
The US Dollar Index (DXY), whose strength traditionally spells headwinds for cryptocurrencies, saw a sudden rebound on the CPI news, topping 109 for the first time since Sept. 9.
Ethereum wobbles as Merge hype fades
As for altcoins, Ether (ETH)’s pain continued as existing weakness was compounded by Bitcoin’s decline.
Despite the arrival of the Merge event, ETH/USD and ETH/BTC extended their losses as the largest altcoin by market cap failed to capitalize on the hype surrounding it.
“Even with the CPI print, this was always an area of resistance,” reacted the popular Altcoin trader Sherpa.
“The strong interaction with this level in the last year remains an area for caution.”
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