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.
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.
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 inew.news