E Point Perfect

Here’s Why Bitcoin Just Plunged 5% in Minutes

article image

Alex Dovbnya

Bitcoin has erased recent gains, plunging below the $22,000 level once again

The price of Bitcoin, the world’s largest cryptocurrency, has plunged sharply on a worse-than-expected inflation report, losing 4.7% of its value in mere minutes. 

Image by tradingview.com

The core consumer price index (CPI) rose 0.6% on a month-over-month basis, which is roughly double the forecast.        

The latest inflation data has thrown a wrench in the works for those who expected Bitcoin to finally start recovering in September after bulls managed to defend the $20,000 level. 

The cryptocurrency’s price action is still driven by broader macroeconomic factors, which is why it plunged swiftly together with U.S. stock futures. 


The new CPI data will likely prompt policymakers at the U.S. Federal Reserve to adopt an even more aggressive monetary policy.                    

The market is now pricing in a 19% chance of a mammoth 100-basis point hike in September, but the consensus appears to be that the Fed will settle for another 75-basis point increase.   

Source link

Related posts

Nasdaq to Expand into Institutional Crypto Custody Services

Cardano Among Top Three Chains with Highest Daily Development Activity

Crypto News Digest by U.Today

ShareRing Advances Its Vault’s User Interface

Ripple Overtakes Cardano in Market Cap Top: CoinMarketCap

Record Billion USD in Bitcoin Transferred as This Report Says Bitcoin May Begin Rising Soon