Bitcoin price drops sharply: US inflation higher than expected

The new inflation figures in the United States were announced this afternoon. Unfortunately, these figures were slightly higher than analysts had previously predicted. In the end, annual inflation fell to 8.2%, while it was assumed to be 8.1%. While this may not seem like a disaster at first glance, the prices of both bitcoin (BTC) as ethereum (ETH) almost immediately red.

Inflation higher than expected

The consumer price index (CPI) was a bit disappointing this month. Nevertheless, inflation has decreased somewhat compared to September of this year. That is of course good news, even if expectations were higher. Inflation appears to be slowing, but not at the rate the market had hoped.

That means that fears are growing again that the US central bank, the Federal Reserve, will raise interest rates further in order to achieve the intended results more quickly. That would be bad news for the markets and for that reason the same market is likely to react negatively to the new CPI figures.

Yesterday the last figures of the producer price index (PPI) announced. These numbers were up 0.4% to 8.5% this month. It is clear that there is still a lot of work to be done for central banks and that is causing unrest in the market.

According to Gabriel Santos of JPMorgan, the marginal increase in the PPI showed that the economy is only in the early stages of the inflation slowdown.

“I think this morning’s data only highlights that we are still seeing the beginning of a slowdown in inflation with very mixed news,” she said on Wednesday. on CNBC.

Bitcoin and Ether Prices

The price of BTC has been hovering between $18,300 and $20,500 for a long time. Just before the new CPI figures from the United States were announced, the BTC rate about $19,000. The volatility immediately increased and within half an hour the bitcoin price plummeted about 3.5% to $18,100.

Read Also:  Changes in ecological transition: Sánchez sends Ribera to Europe

Also the ETH rate was hit by the somewhat disappointing news. The price of ether fell by 4% to $1,190 after the CPI figures were released, before stabilizing just above $2,000.

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here