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%.