Red Hot Inflation Tumbles Ethereum By 5%


The US Consumer Price Index, a comprehensive indicator of the prices of goods and services used in daily life, rose to 9.1% compared to the previous year. The traditional and cryptocurrency markets collapsed as a result of this announcement. The prices of the two largest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), are down about 5%. However, it did not drop as much as expected.

Ethereum drops to inflation

At the time of the CPI report, the price of the second largest cryptocurrency had fallen to $1019 per unit. Prior to the announcement, ETH was hovering around $1089. You have managed to recover from the doldrums.

The price of Ethereum has fallen over the past 30 days by about 15%. At the time of publication, the average price of ETH was $1,037.

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ETH/USD hovers close to $1k. Source: TradingView

The data shows that the price of Bitcoin dropped to trade below the 19K mark. But to reach $31.8 billion, the 24-hour trading volume increased by more than 14%. However, the initial decline in the price of Bitcoin was reversed. As of press time, it is trading at an average price of $19,317.

Related reading | Inflation Reaches 40-Year High, Will Bitcoin and Ethereum Fall Again?

The past four hours have seen a liquidation of about $49 million in Ethereum, according to Coinglass. While in the same time frame, Bitcoin was liquidated by about $33 million. Solana (SOL) has announced the liquidation of approximately $3.43 million in the meantime.

Highest inflation in 40 years

According to reports, the annual rate of the consumer price index for the month of June was 9.1 percent. A prediction of 8.80 percent was made. While the percentage for the previous quarter was 8.60%. But it is said to be the largest increase since November 1981.

The cost of food and energy is said to be the biggest contributor to the increase. The probability that the Fed will raise the interest rate by another 75 basis points in September is very high. Nasdaq futures are down about 1.5%, S&P 500 futures are down 1%, and Dow futures are down 0.6%.

Suggest reading | Quantity (QNT) Records Gains in Last Days – Is a Short-Term Rise in Place?

Featured image from Shutterstock, chart from TradingView.com



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