As hitting a three-week high, Bitcoin immediately fell after US inflation statistics came in worse than many traders had anticipated. Other prestigious cryptocurrencies also decreased.
After consumer price index, or CPI, inflation data came in hotter than anticipated, there was a fresh expectation that the US Federal Reserve would adopt a more restrictive US monetary policy, which led to Wednesday’s decline in the price of cryptocurrencies.
The US consumer price index grew just 0.1% in August, but the core rate of inflation—which excludes the cost of oil and food—rose sharply by 0.6%, above Wall Street’s prediction of a 0.3% increase.Bitcoin (BTC-USD) was trading at a three-week high on Tuesday of $22,652 but has since dropped 9.5% to $20,261 as of this writing.
Ethereum (ETH-USD) lost gains earned prior to the publication of the inflation statistics and followed bitcoin on its descent.Despite the expectation for tomorrow’s Ethereum “merge” to a proof of stake technique for transaction validation, the second-largest cryptocurrency in the world (ETH-USD) dropped from $1,745 on Tuesday to $1,609.
Following bitcoin’s decline, Ethereum (ETH-USD) erased gains made before the release of the inflation numbers.The second-largest cryptocurrency in the world (ETH-USD) fell from $1,745 on Tuesday to $1,609 despite the assumption that Ethereum will “merge” to a proof of stake technique for transaction validation tomorrow.