US consumer prices index (a measure of daily living costs) increased by 9.1% in the past year. As a result, both the traditional and cryptocurrency markets collapsed. Bitcoin (BTC), and Ethereum (ETH) were the most popular cryptocurrencies. Their prices fell nearly 5%. It didn’t plummet as much, though, as was expected.
Ethereum To Fall to Inflation
The price of the second largest cryptocurrency, ETH, fell to $1,019 an unit at the time the CPI report was released. Before this announcement, the price for ETH fluctuated around $1,089 USD. It is now back in the ascendtive slump.
In the last 30 day, ethereum’s price has dropped by around 15%. The average price per ETH was $1,037 at the time of publication.
Close to $1k is the average exchange rate between ETH and USD Source: TradingView
According to data, bitcoin’s price fell below the 19K barrier. However, the 24-hour trading volume of bitcoin has increased more than 14% to $31.8 billion. But, bitcoin prices recovered from their initial fall. At the time this article was published, bitcoin traded at an average price $19,317.
Inflation Hits New 40-Year High, Will Bitcoin And Ethereum Plummet Again?| Inflation Hits New 40-Year High, Will Bitcoin And Ethereum Plummet Again?
According to Coinglass., Ethereum has seen liquidation worth $49 Million in the past four hours. Bitcoin saw a liquidation in the same period of time for $33 million. Solana (SOL), declared liquidation for almost $3.43million in that time.
Inflation Highest In 40 Years
The June adjusted CPI annual rates was 9,1 percent, according to reports. The projection was 8.80%. While the prior quarter’s percentage was 8.60%. But it’s said to be the biggest increase since November 1981.
The largest factors contributing to this increase are, according to some reports, energy and food costs. It is very likely that the Fed will hike the rate another 75 basis points in September. Nasdaq futures decreased by almost 1.5 percent, S&P 500 futures decreased by 1%, and Dow futures decreased by 0.6 percent.
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Featured image taken from Shutterstock. Chart is from TradingView.com
