Fake Inflation Data Triggers BTC, ETH Price Dump

Nidhish Shanker
July 13, 2022
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
CPI Inflation

A fake news release claiming to disclose the Consumer Price Index for June 2022 caused a sharp downfall in crypto prices on Tuesday. The fake report detailed the CPI for June 2022 to rise by 1.7 percent to reach 10.2 percent. 

The fake report was claimed to be leaked, since the real CPI data will be released on the 13th of July, 2022 at 8:30 AM EST. The Consumer Price Index is monthly data that reveals the change in prices paid by US consumers. CPI, released by the US Bureau of Labor Statistics, is a strong measure of inflation. 

The Bureau of Labor Statistics took to Twitter to confirm that the report circulating on social media is indeed fake and that the real update will be released on the 13th of July at 8:30 AM EST. 

Advertisement
Advertisement

The Impact On Crypto

With the circulation of the fake CPI data, crypto prices experienced a significant fall. BTC fell down to as low as $19,302. It recovered slightly and is currently trading at $19,488.  ETH fell down by as much as 7% to reach $1,038. It is currently trading at $1,056. Other cryptocurrencies suffered significant downfall as well.

The CPI is a strong measure of inflation and is a strong indicator of the Federal Reserves’ monetary policies. If the CPI report reveals worsening inflation, the Fed responds to it by raising interest rates and quantitative tightening policies. 

Recently, the Fed raised the interest rates by 0.75 percent points in response to rising inflation. The move resulted in a sharp decline in crypto prices. Bitcoin suffered its financial quarter in a decade. 

Advertisement
Advertisement

Investors Wary Of CPI

Investors and traders across the crypto industry are very hesitant to be bullish on crypto until the CPI data is released. Lark Davis, a major crypto influencer and trader, believes that CPI can ruin crypto prices as the macros still dictate crypto. 

Meanwhile, the White House spokeswoman Jean-Pierre revealed that she believes the CPI for June will be highly elevated.

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Nidhish is a technology enthusiast, whose aim is to find elegant technical solutions to solve some of society's biggest issues. He is a firm believer of decentralization and wants to work on the mainstream adoption of Blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.