BTC, ETH prices fluctuated strongly after US inflation news in August 2022
The crypto market has plummeted after the August 2022 US CPI data, despite falling, returned higher-than-expected results, raising doubts that the Fed will still keep its target of raising interest rates by 0.75%. at the end of September.
As FoxCryptoNews mentioned in the article important events to watch out for in September 2022, at 7:30 PM on September 13, the US releases the Consumer Price Index (CPI) for August. Here it is. signal represents the inflation rate of the US economy, which has been at a 4-decade high in recent months.
In previous CPI releases, the price of BTC and the cryptocurrency market in general have been volatile in short time frames. Specifically:
– Bitcoin reacts unexpectedly to US CPI in April
– BTC dump slightly because of US inflation news in May
– Bitcoin and Ethereum “shaken” because of June inflation news
– BTC reacts positively to July CPI news as inflation cools down
According to the latest data released In addition, the US CPI in August was8.3%, down from 8.5% in the previous month but still higher than analysts' prediction of 8.1%. This shows that the inflation situation in the US has not had too many positive changes, and is even more serious than analysts' observations.
Because of this not-so-positive signal, BTC and ETH prices both started to dump strongly.
The price of BTC is currently trading at $21,900, having slipped from around $22,800 just minutes before the CPI announcement. There was a time when the price of this coin touched 21,600 USD and now the selling pressure shows no sign of stopping.
ETH price is trading at $1,665, also sliding sharply from around $1,760 a few minutes ago.
With such red candles, the total derivative orders liquidated in the last 1 hour is 50 million USD, with most of them long orders. Of which, up to 13 million USD were liquidated BTC long orders.
In the coming days, the crypto community is “holding its breath” waiting for the Paris Hard fork – the final step of Ethereum to complete The Merge.
In addition, with the CPI not being positive, it is highly likely that the Fed will keep the interest rate hike unchanged at 0.75% in the adjustment intervention at dawn on September 22.
This is based on the assertion of Fed Chairman Jerome Powell that: The Fed still maintains a "hawkish" attitude, not giving up controlling inflation in exchange for growth. The agency intends to maintain interest rate hikes to reach the 2% inflation target by the end of this year.
Sep 13, 2022