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Crypto Market Continues Decline After US CPI Surges 3.7%

The US CPI rose 3.7% in September, sparking volatility amid global tensions and extending losses in the crypto market.
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Crypto Market Continues Decline After US CPI Surges 3.7%

The US Bureau of Labor Statistics has released the much anticipated CPI data today. The latest CPI data, a closely watched index to gauge inflation, showed that the US inflation rose 3.7% in September, more than what the market was expecting.

Meanwhile, the global financial market has been highly volatile lately, due to rising concerns over the Israe-Hamas war, and other macroeconomic events. Notably, the crypto industry has struggled to stay in the positive territory, as investors remained on the sideline.

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US CPI Advances 0.4%

The latest data by the Labor Department showed that the US Inflation advanced 0.4% in September, down from a surge of 0.6% in the prior month. On an annual basis, the all-items index rose 3.7%, as compared to market expectations of 3.6%.

The core CPI, which excludes food and energy prices, ticked up 0.3% for the month of September, the same increase as noted in August. On an annual basis, the core inflation advanced 4.1% last month.

The investors were eagerly waiting for the key economic data, for cues on where the economy is approaching. Meanwhile, the latest PPI data, another core metric for inflation, was released by the Labor Department on Wednesday.

The PPI data showed that the inflation, although cooled from August, came in hotter-than-anticipated. It has raised concerns among investors, as it would provide more space for the Fed to announce further rate hikes at their upcoming gatherings.

Meanwhile, The Federal Open Market Committee (FOMC) met on October 11 to assess rising US PPI data, signaling concerns for risk-on assets. Most Fed officials lean toward another year-end rate hike to support high interest rates until annual inflation stabilizes at 2%.

Following the CPI data, the US Dollar Index rose 0.21% to 105.790 on Thursday. On the other hand, the US 10-year Bond Yield advanced 0.17% to 4.601 at the same time.

Notably, the CME Fed Watch Tool now showed a 92.5% probability of the Fed pausing its rate hike stance at the end of their upcoming meeting on November 1.

Also Read: Platypus Finance Loses $2 Mln In A Latest Security Breach

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Crypto Market Performance

The crypto market has struggled to maintain a positive momentum this week. Meanwhile, following the CPI data release, the market has continued its downward momentum, indicating that the hovering concerns are reducing the risk-bet appetite of investors. Notably, the crypto market fear and greed index was at 40, suggesting a “fear” sentiment among the market participants.

As of writing, the global crypto market cap lost 1.28% and stayed at $1.05 trillion, while its volume over the last 24 hours decreased by 3.05% to $25.25 billion. Over the last 24 hours, Bitcoin’s dominance tumbled 0.05% to 49.99%.

The largest crypto by market cap, Bitcoin led the losses in the broader market. Bitcoin price slipped 1.51% to $26,802.12 as of writing on October 12, while its volume rose 1.32% to $12.24 billion from yesterday.

On the other hand, the Ethereum price was down 1.50% to $1,548.35 during writing, with its volume declining 11.96% to $5.05 billion. Simultaneously, the XRP price also noted a slump of 1.67% to $0.4791, and its one-day volume surged 4.92% to $799.02 million.

Also Read: Ethereum Price Prediction As Market Capitalization Shrinks, ETH Recovery Wrecked?

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CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

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