View profile

Bitcoin plunges as data reveals hotter than expected CPI print

CryptoWhale
CryptoWhale
Bitcoin maximalists have been screaming “Inflation hedge” for years, yet as the inflation crisis reaches unprecedented levels and their asset tumbles to new lows. And they all go silent…

The price of Bitcoin tanked by 6% following the release of September’s Consumer Price Index (CPI) data showing inflation at 8.2% year-over-year.
This came in worse than the 8.1% expected rate, extending fears of a drawn-out bear market while adding pressure for further rate hikes.
The pressure is on
On October 7, the U.S. Bureau of Labor Statistics (BLS) posted non-farm payroll data for September, showing a 263,000 increase in jobs during September.
Bitcoin reacted with an immediate 1% swing to the downside to close the day at $19,400.
The strong U.S. jobs report highlighted efforts to cool the economy are not filtering through. Today’s CPI data puts further pressure on the Fed to press ahead with its hawkish agenda.
While CPI inflation was worse than expected, JPMorgan said any increase above 8.3% would be “big trouble for the stock market.” By extension, this would also refer to other risk-on assets, including cryptocurrencies.
Bitcoin slumps on hotter-than-expected CPI
Since last month’s CPI announcement, the market leader has been ranging between $18,300 and $20,500 without printing a definitive price pattern in either direction.
However, having peaked at $19,200 during the late evening (UTC) of October 12, Bitcoin has been trending down. The gradual downtrend turned into a volatile spill at 11:15 (UTC), leading to a 2% swing to the downside that bottomed at $18,600.
The ensuing bounce later led to a strong rally, recovering the previous losses. This move topped out at $19,000 on the eve of the CPI announcement before bears took control leading to an immediate drop to $18,200.
Inflation is up 8.2%
While Bitcoin is down 82%
Day by day, the false “inflation hedge” narrative is falling apart.
Don’t miss out on the other issues by CryptoWhale
Did you enjoy this issue? Yes No
CryptoWhale
CryptoWhale @cryptovinco

#1 Finance Newsletter - Join Over 230,000+ Subscribers in Staying Up To Date On Everything Crypto and Stock Related.

Subscribers will receive weekly insights into must-read crypto news events, Bitcoin and altcoin price predictions, market research, and contrarian financial perspectives.

www.twitter.com/cryptovinco
www.twitter.com/whalewire

You can manage your subscription here.
In order to unsubscribe, click here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Created with Revue by Twitter.