Bitcoin (BTC) immediately fell below $22,000 on September 13, after US inflation data failed to meet projections.
CPI prints spark the major crypto route
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD fell sharply to $1,000 after consumer price index (CPI) inflation for August came in at 8.3% year-on-year.
The general consensus was 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 is coming in above expectation at 8.3% (estimated 8.1%), but lower than July with 8.5%.
MoM Core CPI Coming in Hot
0.6% is more than twice the expected 0.3%.Not what the Fed wants to see.
So 75bps is it in the next meeting?
— Jan Wustenfeld (@JanWues) 13 September 2022
Nevertheless, versus July, year-over-year growth was still down 0.2%, preserving the overall trend of slower CPI inflation.
However, this was not enough to escape the crypto route, and at the time of writing, bitcoin is below $21,500, down 4% on the day.
As market participants raised bets on 75-basis-point and even 100-point rate hikes from the Federal Reserve next week, cold feet were increasingly noticeable before Wall Street opened.
it’s just a test of the real
— Capo of Crypto (@CryptoCapo_) 13 September 2022
“There’s a lot of volatility and a ton of fake-outs around these events,” said Michael van de Poppe, founder and CEO of trading firm Eight. reacted,
“Remind yourself and avoid excessive trading. Right now, the lows have been taken and some consolidation is taking place.”
The US Dollar Index (DXY), strength which has traditionally meant headwinds for crypto, saw a flash rebound on CPI news, passing 109 for the first time since September 9.
Ethereum falters as merge hype
On altcoins, the pain continued for Ether (ETH) as the current weakness was compounded by the decline of Bitcoin.
RELATED: Bitcoin and Altcoins Move Upward, But Upcoming Macro Events Could Limit Rally
Despite the impending merge event, both ETH/USD and ETH/BTC extended losses as the largest altcoin by market cap failed to capitalize on the hype surrounding it.
“Even With the CPI Print, It Was Always an Area of Resistance,” Popular Trader Altcoin Sherpa reacted,
“Heavy conversation w. At this stage compared to last year, it’s still an area of caution.”
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, so you should do your own research when making a decision.
