Cryptocurrency

Bitcoin slumps 3% as data reveals hotter than expected CPI print

Bitcoin price fell 3% after the September Consumer Price Index (CPI) data was released. 8.2% YoY.

This was worse than the expected 8.1%, fueling fears of a prolonged bear market and adding pressure for further rate hikes.

pressure is on

On October 7, the U.S. Bureau of Labor Statistics (BLS) released its nonfarm payrolls figures for September, showing an increase of 263,000 jobs in September.

Bitcoin immediately dropped 1% to close at $19,400.

The strong US jobs data has highlighted that efforts to cool the economy are not permeating. Her CPI data today puts more pressure on the Fed to push its hawkish agenda.

The consumer price index was worse than expected, but JP Morgan A rise of 8.3% or more would be “a big problem for the stock market,” he said. By extension, this also refers to other risk-on assets, including cryptocurrencies.

Bitcoin Falls With Higher Than Expected CPI

Since the CPI announcement last month, the market leader has hovered between $18,300 and $20,500, showing no clear price pattern in either direction.

However, after peaking at $19,200 at midnight (UTC) on October 12, Bitcoin is on a downward trend. The gradual downtrend turned into a volatile outflow at 11:15 (UTC), leading to a 2% swing to bottom at $18,600.

The ensuing bounce later led to a strong rally to recoup earlier losses. The move was dominated by the bears after he peaked at $19,000 on the eve of the CPI announcement, and soon he fell to $18,200.

bitcoin 15 minute chart
sauce: BTCUSDT on TradingView.com

The Federal Open Market Committee (FOMC) meeting ends on November 3rd. The probability of a fourth 75 basis point rate hike is down from last week’s 81% 98%.

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