Bitcoin price sheds $1K in 3 minutes as US CPI inflation overshoots
Bitcoin (BTC) crashed below $22,000 instantly on Sep. 13 after United States inflation data failed to meet estimates.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD swiftly falling $1,000 after Consumer Price Index (CPI) inflation for August came in at 8.3% year-on-year.
Consensus had agreed that 8.1% would be the latest figure, and the overshoot suggested that inflation was not slowing at the expected pace.
US CPI for August YoY coming in above expectations at 8.3% (expected 8.1%) but lower than in July with 8.5%.MoM core CPI coming in hot at 0.6% twice as high as the expected 0.3%.Not what the Fed wants to see.So 75bps it is at the next meeting?
Nonetheless, versus July, year-on-year growth was still down 0.2%, preserving the overall trend of slowing CPI inflation.
This was not enough to avoid a crypto rout, however, and at the time of writing, Bitcoin was below $21,500, down 4% on the day.
As market participants increased bets on a further 75-basis-point and even a 100-point rate hike from the Federal Reserve next week, cold feet were increasingly noticeable ahead of the Wall Street open.
This is just a test of the real
"Lots of volatility around these events and a ton of fake-outs do happen," Michaël van de Poppe, founder and CEO of trading firm Eight, responded.
The U.S. dollar index (DXY), strength in which traditionally means headwinds for crypto, saw a flash rebound on the CPI news, passing 109 for the first time since Sep. 9.
On altcoins, pain for Ether (ETH) continued as existing weakness was compounded by Bitcoin's dip.
Related: Bitcoin and altcoins pop to the upside, but upcoming macro events could cap the rally
Despite the incoming Merge event, ETH/USD and ETH/BTC both extended losses as the
Read more on cointelegraph.com
