Bitcoin barely clings to $20,000 as US CPI data for August rattles crypto markets

Bitcoin Barely Clings to $20,000 as US CPI Data for August Rattles Crypto Market

A strong US Consumer Price Index (CPI) print for August sent short-term Treasury yields higher, which charged the US dollar and then sent the crypto market spiraling. Given the situation, Bitcoin has fallen over 8 percent in the last 24 hours and is now trading above $20,000 (roughly Rs. 15.94 lakh) on global exchanges, while Indian exchanges like CoinSwitch and CoinDCX are valuing BTC. $22,084 (roughly Rs. 17.6 lakh), down 5.19 percent from Tuesday morning.

Bitcoin is priced at $20,348 (Rs. 16.22 lakh approx) on global exchanges like CoinMarketCap, Coinbase and Binance while CoinGecko data The value of BTC continues to sit 8 percent higher than where it stood last Tuesday.

Just below the world’s largest cryptocurrency by market capitalization, Ether also saw a steep drop in value, despite excitement about the ‘merger’ in the coming days. Ether was valued at $1,751 (roughly Rs. 1.4 lakh) on all Indian exchanges, while the crypto was valued at $1,615 (roughly Rs. 1.28 lakh) on global exchanges, where the value of the cryptocurrency fell by 5.22 percent. In the last 24 hours.

Ether’s exposure to the first two days of the week has seen the cryptocurrency fall in value, and is still higher than it was last week, CoinGecko data That suggests the world’s second-largest crypto asset is still up 3.3 percent from last week.

Gadgets 360’s cryptocurrency price tracker revealed that most major altcoins had a similarly poor reaction to the new US CPI data. Global crypto market capitalization also fell by 6.18 percent between late Tuesday and early Wednesday.

Polkadot, Cosmos, Solana, Cardano, Polygon, TRON, Uniswap, Monero, Avalanche, Chainlink and BNB have all suffered huge losses in the last 24 hours.

Memecoins Shiba Inu and Dogecoin also followed most of the altcoins that showed losses. Dogecoin is currently valued at $0.06 (approximately Rs. 4.82) after losing 4.09 percent in the last 24 hours, while Shiba Inu is valued at $0.000012 (approximately Rs. 0.00098), down 3.63 percent from the previous day.

“Bitcoin and crypto assets fell on the release of the US August CPI print, as the 8.3 percent inflation print beat expectations of 8.1 percent and still registered a 20 basis point drop from the July number. This may suggest that inflation has peaked. Perhaps a bit premature because Market consensus is that the FED will likely hike by 75 bps at the next FOMC meeting on September 21.

The resulting volatility resulted in around $104 million (roughly Rs. 829 crore) worth of crypto liquidation within an hour immediately after the announcement to eliminate over-leveraged speculative positions in the market. The crypto market cap looks poised to retest the $1 trillion (roughly Rs. 79,69,409 crore) level amid more negative macroeconomic data as the correlation between crypto and equities continues to be highly correlated with crypto prices being tied to other risk assets. Strict,” the research team at CoinDCX tells Gadgets 360.

Cryptocurrency is an unregulated digital currency, not legal tender and subject to market risk. The information provided in the article is not and is not intended to constitute financial advice, business advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss arising out of any investment based on any perceived recommendations, estimates or any other information contained in the article.


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