Even as inflation spiraled out of control, new data released by the US government again knocked the markets down this Thursday (13). While bitcoin lost nearly 5% of its value within minutes, other cryptocurrencies followed suit.
Ethereum, the second largest on the market, is trading at $1,200, hitting its lowest price since July this year and removing all animation left over from The Merge, an update that changed protocol last month.
As for smaller projects, it’s hard to find one that has made a profit in the last 24 hours. The highlight is the Huobi token (HT), which is still on the rise after the exchange’s sale earlier this week.
repeated history
Last month, US inflation data dropped the price of Bitcoin by nearly 5%. This Thursday (13), investors have already witnessed the same move while dollar inflation is still out of control.
Monthly inflation rose by 0.4%. Compared to the same month of the previous year, this number was 8.2%, far from the government’s target of 2%.
The energy sector – which includes products such as gasoline – still seems to be the most affected, with prices almost 20% more expensive. Then the dollar will also lose purchasing power for food, about 11.2% compared to last year.
As a result, investors believe the Fed will continue to raise interest rates until inflation reaches acceptable levels. As such, many fear that the US will plunge into recession in the coming months if the economy slows.
Falling Cryptocurrency Market
According to data from CoinGecko, only 7 of the top 100 cryptocurrencies (excluding stablecoins) fell on Thursday (13) after the release of US inflation data.
On the other hand, currencies with a depreciation of up to 12.4% appear in the last 24 hours. Among the worst results, it is possible to find giants such as Axie Infinity (AXS), Solana (SOL) and Ethereum Classic (ETC).
Bitcoin is already trading at $18,350, an alarming value as this region is considered the biggest price support.
Ethereum, even with its biggest upgrade in history last month, is also unable to withstand the pressures put on the markets by the Fed’s monetary policy, and could bounce back to $1,000.
Finally, some veterans like Paul Tudor Jones still believe that both BTC and ETH will have great appreciation, but without a fixed date. The reason is precisely linked to dollar inflation.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
