• Thu. May 30th, 2024

Bitcoin, Ether prices fall sharply after hot US inflation data

  • Bitcoin fell below $21,000 or -9% to touch lows of $20,427 on Coinbase, while Ethereum price retreated to $1,590.
  • Stocks also plunged on the hotter-than-expected CPI data, with S&P 500 down more than 3%.

Crypto witnessed another sharp sell-off Tuesday as risk-on assets reacted negatively to fresh US inflation data, which came in hotter-than-expected.

In cryptocurrencies, Bitcoin (BTC) fell nearly 10% to break below $21,000 as losses in the altcoin market included Ethereum (ETH) dipping under $1,600. The losses across cryptocurrencies had the sector nursing over 5% in total market cap declines, which together pushed the metric to $1.05 trillion.

BTC/USD daily chart showing the sharp decline in price after the CPI data. Source: TradingView

Bitcoin traded to lows of $20,427 per unit on major crypto exchange Coinbase as shown in the above chart.

Stocks also fall sharply

The picture was not that different on Wall Street, with traditional financial markets experiencing a similar downside move. The S&P 500 fell more than 3% and the Nasdaq shed 4% as stocks crashed on the hot inflation readings. 

The Dow Jones Industrial Average was down more than 900 points, or 3% lower at around 14:25 pm ET.

On Tuesday, the US Bureau of Labor Statistics released the latest Consumer Price Index (CPI) readings for August, with data showing prices increased by 8.3% year-over-year last month. Prices rose 0.1% over the month to come in hotter than the expected 8.1%YoY and a 0.1% decline over the month.

The markets’ reaction to the data comes as the US Federal Reserve is expected to raise interest rates by another 75 basis points next week. Commenting on the print, CNBC’s Steve Liesman said the 75 bps is now “written in red.”

Going back to the crypto market, a key event to watch this week is the highly anticipated Ethereum Merge, which analysts say could come with increased volatility not just for ETH but for most other crypto assets.

The post Bitcoin, Ether prices fall sharply after hot US inflation data appeared first on CoinJournal.