Both traditional financial markets like stocks and new risky investment channels like cryptocurrencies are impacted negatively by the latest US inflation report. The previous month for example, after the August CPI was higher than forecasts, Bitcoin’s price plummeted 8.7% to close to the $20,000 mark.
The US plans to announce its inflation rate for August on Oct 13 and this time is also no exception. Before the US announces inflation report for August, the crypto market has seen its latest dump on early Tuesday morning as Bitcoin dropped below the $19,000 threshold, bottoming at $18,950. Other major altcoins also fell by 3-5% over the past 24 hours – not a deep fall but was enough to make the market sink into the red.
Although the specific cause of this dump is not clear, it could be heavily impacted by the US stock market ahead of the US inflation report for Sep 2022 on Oct 13. Since Oct 2021, Bitcoin has always seen huge volatility every time the US released its monthly CPI. The NASDAQ led the declines on October 10, registering its lowest closing level since July 2020 as investors worried about the impact of higher interest rates because Fed officials may not change their strategy of raising interest rates to fight inflation. Although Bitcoin hash rate hit a new high on Oct 10, it still cannot make Bitcoin price reverse.
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