Will Bitcoin Become More Volatile As US Inflation Hits 8.2%
October 16 2022 - 7:47PM
NEWSBTC
The impact of macroeconomic factors on crypto and Bitcoin is
increasing as inflation gets stronger. Both the crypto and the
traditional market are facing a raging storm. Many international
bodies fear that a possible global recession will soon break out.
Another round of volatility has commenced in the crypto market. The
cause is the US Consumer Price Index (CPI) report. The data is at
8.2% for the September record. Related Reading: Elrond (EGLD) Price
May Break Past $56 Hurdle – Here’s How The United States CPI data
serves as a gauge for measuring the inflation rate in the country.
It records the average price change consumers pay for goods and
services over time. Core US Inflation Reaches 40 Year High A
measure of the US CPI revealed that inflation exceeded many
people’s expectations. The September record indicated the value had
reached a 40-year high. The Labor Department gave further details
on the report on Thursday, September 13. The core consumer price
index, which excludes food and energy, surged by 6.6% over the past
year. This value is the peak mark since 1982. In addition, it noted
that from the earlier month, the core CPI increased by 0.6% for the
following month. Hence, the overall CPI surged by 0.4% in September
to hit the high value of 8.2% year-to-year. Recall that in August,
the CPI data rose to 8.3%. In June, the annual CPI peaked at 9.1%,
the highest value since November 1981. The latest CPI data is
increasing the pressure on the Federal Reserve to spike interest
rates. However, the Fed has maintained an aggressive disposition in
curbing inflation and bringing the rate down to its coveted target
of 2%. Hence, there’s the possibility of getting another 75-basis
points as an increase in interest rate by November. The Federal
Reserve has already implemented such a spike in rates three times
in the year. Crypto And Bitcoin Volatility The crypto market was
red as most crypto assets lost value within the week. Prices are
going to the south drastically with little or no restriction for
the tokens. Bitcoin has seen a case of constant fluctuation. Not
only did the primary crypto asset lose its grab on its critical
level of $20K, its southward movement even continued. Related
Reading: MakerDAO Revenue Experiences A Major Drop, Here’s Why
While it crashed to the $19,000 region, the primary crypto assets
stalled for a few days around the level, but BTC later plummeted
below $19K to hit $18,500. This inconsistency has created fear and
doubts for several participants in the crypto space. Some are
even highlighting signs of massive volatility for the token. At the
time of writing, Bitcoin has shown a slight move in recovery. The
token is trading at around $19,131.69, indicating an increase over
the past 24 hours. Its dominance over altcoins is at 40.19%.
Featured image from Pixabay and chart from TradingView.com
Maker (COIN:MKRUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Maker (COIN:MKRUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024