Bitcoin loses 4% as inflation does not fall as quickly as expected. As a result, the crypto market will see a wave of sell-offs, and Russia will regulate cross-border crypto payouts by the end of the year.
Bitcoin (BTC) quickly fell below $22,000 on September 13. As expected, U.S. inflation data disappointed.
CPI printing results in a significant crypto rout
The August Consumer Price Index (CPI) inflation figure was 8.3% yearly after the release. According to Cointelegraph Markets Pro and TradingView data, BTC/USD has dropped by $1,000. The overshoot signaled that inflation was not falling at the expected rate, even though it was assumed that the most recent figure would be 8.1%.
The year-over-year increase, however, was down 0.2% from July to August. As a result, the general trend of slower CPI inflation continues. However, this was insufficient to halt the crypto rout, and Bitcoin was trading at $21,500 at the time of writing, down 4% on the day.
Cold feet were evident before the opening of Wall Street. Since then, market participants have increased their bets on the Federal Reserve, raising interest rates by 75 basis points, possibly 100 basis points, next week. “There’s a lot of volatility about these events, and many fake-outs do happen,” said Michal van de Poppe, founder and CEO of trading firm Eight.
“Keep that in mind and avoid excessive trading.” Lows are being taken, and some consolidation appears to occur.” Listening to the CPI news, the U.S. dollar index (DXY) often represents headwinds for cryptocurrencies. At the same time shared a brief response and passed 109 for the first time since September 9.
Ethereum falters as the Merge hype fades.
Because of the drop in Bitcoin, Ether’s (ETH) pain on altcoins has gotten worse. ETH, the largest altcoin by market cap, continued to lose money despite the upcoming Merge event. As a result, it missed out on the excitement that surrounded it. “Even with the CPI print, this was still a place of opposition,” famous trader Altcoin Sherpa responded.
“Even though there has been a lot of engagement with this level in the last year, it still warrants caution.” The FOMC decision on September 21 may cause traders to reduce their risk exposure, capping recent gains in the cryptocurrency market. In the six days leading up to September 12, the total crypto market value increased by 13%, approaching $1.1 trillion.