Breaking: Worse Than Expected Consumer Price Index Results In Crypto Slide

The eagerly awaited Consumer Price Index for September has finally been published, and it has brought more agony and pain than relief. The results are worse than expected, and the CPI increased by 8.2% on a YoY basis instead of the expected 8.1%. Worse, the core of the CPI performed even worse and came out as 0.6% instead of the expected 0.4%. On a YoY basis, the core CPI exceeded the expected 6.5% to 6.6%. The worse-than-predicted CPI data immediately hit the crypto sector like a sledgehammer, leading to an increased selloff in the crypto market.

Bitcoin fell close to 3.39 % in a matter of a few minutes. It is currently trading at $18,423. BTC had a 24 hrs. low of $18,198.43 and a high of $19,229. The number two crypto asset, ETH, is also a $1,2K mark. ETH fell by 2.33% in a few minutes and is currently trading at $1217.

Crypto Market Bleeding Due To Consumer Price Index

The crypto sector is bleeding due to harmful macroeconomic factors—most crypto assets ended in the red. As mentioned, BTC tanked by 3.39% and has fallen below the resistance level of $19K. BTC had maintained to hold at $19K, but the Consumer Price Index data has hit it like a sledgehammer. Solana also fell by 1% in the last 24 hours and is still tanking when reports last came in.

The CPI, or the Consumer Price Index, is considered a Benchmark by the Federal Reserve while formulating measures to tackle inflation. The U.S has been facing one of the biggest and unbridled bouts of inflation in the last forty years. The Fed officials are trying all the tricks to rein in inflation but to no avail. It had already increased interest rates by four consecutive 75 bps giant hikes. After insufficient inflation data, another 75-bps hike is now highly likely.

The market is also apprehensive about a jumbo 100 bps hike by the Fed. The last time this happened, it led to a massacre and mayhem in the crypto sector. The crypto market is already seeing a massive downward movement. A 100-bps hike will strike another death blow to the already tottering crypto sector.