With inflation becoming stronger, the macroeconomic impact on Bitcoin and crypto is growing. Both crypto and traditional markets face a severe storm. International bodies are concerned about a global recession.
The crypto market has seen another round of volatility. US Consumer Price Index (CPI), report is to blame. For September, the data are at 8.2%.
CPI data for the United States is used to measure the nation’s inflation. This data tracks the change in prices consumers have paid over time for goods and service.
The 40-year high in core US inflation is a sign of a strong economy
A measure of the US CPI revealed that inflation exceeded many people’s expectations. In September, the record showed that inflation reached an all-time high of 40 years.
On Thursday, September 13, the Labor Department provided further information about this report. Over the past year, core consumer prices index, which does not include food or energy, increased by 6.6%.
This figure is the maximum mark since 1982. It also noted that the core CPI had increased 0.6% from the previous month. The September total CPI soared 0.4% to 8.2%, a record high.
Remember that the CPI rose 8.3% in August. The annual CPI reached 9.1% in June. This is the highest level since November 1981.
CPI data from the latest quarter puts pressure on Federal Reserve officials to increase interest rates. But, the Fed continues to be aggressive in controlling inflation and getting the rate down below its desired target of 2%.
Hence, there’s the possibility of getting another 75-basis points as an increase in interest rate by November. This type of rate increase has been implemented by the Federal Reserve three times this year.
Bitcoin and Crypto Volatility
As most of the crypto assets experienced a decline in value over the past week, it was a red market. The prices are falling rapidly, with tokens being subject to no restrictions.
Bitcoin’s volatility has been constant. The primary cryptocurrency asset lost its grip on the critical $20K level, but its downward movement continued.
It crashed below $19,000, and the main crypto assets were unable to move for several days. However, BTC plummeted to $18,500, just $19K above the level. Many people in crypto have been frightened and doubted by this instability. Some have even highlighted signs of volatility for the token.
Bitcoin’s recovery has been slight at the time of this writing. It is now trading at $19,131.69. This indicates an increase of around 1% over the previous 24 hours. Altcoins are trailing it by 40.19%.
Featured image by Pixabay, chart from TradingView.com