Ethereum Tanks By 5% As Inflation Jumps; Will ETH Drop More?

The US consumer price index which is a wide measure of everyday goods and services jumped to stand at 9.1% from the previous year. This announcement has left the global traditional and crypto market tumbling. The biggest of the Cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH) prices dropped by around 5%. However, it didn’t fall as much as it was anticipated.

ETH drops to $1,019 price level

The second largest cryptocurrency’s price dropped as low as $1,019 at the time of the CPI announcement. ETH was trading around the price of $1,089 before the declaration. Somehow, it has recovered from the inceptive drop.

Ethereum prices have dropped by around 15% in the last 30 days. ETH is trading at an average price of $1,037, at the press time. However, its 24 hour trading volume is up by 35% to stand at $17.1 billion.

As per the data, the BTC price dropped to trade below the 19K price level. However, its 24 hour trading volume has jumped by over 14% to stand at $31.8 billion. However, Bitcoin price recovered from the initial drop. It is now trading at an average price of $19,317, at the press time.

According to the Coinglass, Ethereum has recorded a liquidation of around $49 million in the last 4 hours. While Bitcoin has registered a liquidation of around $33 million in the same period of time. Meanwhile, Solana (SOL) has reported a liquidation of around $3.43 million.

Inflation jumps 9.1% in June

As per reports, the adjusted CPI annual rate was recorded to be 9.1% in June. It was forecasted at around 8.80%. While the previous quarter was 8.60%. However, it is reported to be the largest surge since November 1981.

Energy and Food price are reported to be the main reasons for the increase. There is a massive chance that the Fed will raise the rate by another 75 basis points in September. Meanwhile, Nasdaq futures fell by around 1.5, S&P 500 futures dropped by 1% while Dow futures were down by 0.6%.

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Ashish Kumar

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

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