Bitcoin price drops $1K in three minutes after US CPI inflation exceeds

After the United States failed to provide inflation data, Bitcoin ( ) dropped below $22,000 immediately on September 13.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Major crypto rout sparked by CPI print

Data from Cointelegraph Markets Pro, and tradingView showed that BTC/USD dropped quickly to $1,000 in August after Consumer Price Index (CPI), inflation of 8.3% for August.

It was agreed that 8.1% would be the most recent figure. The overshoot indicated that inflation was not slowing as expected.

However, July’s year-on-year growth was 0.2% lower than July. This continues the trend of slower CPI inflation.

However, this was not enough to prevent a crypto rout. At the time of writing Bitcoin was at $21,500. This is 4% less than the previous day.

Fed target rate probabilities chart. Source: CME Group

Market participants increased wagers on another 75-basis point and even a 100 percent rate hike by the Federal Reserve next Wednesday. Cold feet became more evident ahead of the Wall Street opening.

“Lots and lots of volatility around these events, and a ton fake-outs do occur,” Michael van de Poppe (founder and CEO of trading company Eight), replied.

Avoid excessive trading and keep that in mind. “At the moment, lows have been taken and some consolidation seems like it is happening.”

The strength of the U.S. dollar (DXY), which is traditionally a headwind for crypto, saw a flash recovery on the CPI news. It passed 109 for first time since Sept. 9.

U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView

Ethereum falters as Merge hype wanes

Altcoins continue to experience pain for Ether ( ETH), as the existing weakness was compounded with Bitcoin’s fall.

Similar: Bitcoins and altcoins surge to the upside, but upcoming macro-events could cap the rally

ETH/USD, and ETH/BTC suffered losses despite the upcoming Merge event. This is because the largest altcoin market cap did not capitalize on the hype surrounding it.

“Even with CPI printing, this was always an area for resistance,” Altcoin Sherpa stated.

“Heavy interaction with this level over last year, it is still an area to be cautious.”

These views and opinions are the author’s and do not necessarily reflect those of You should do your research before making any investment or trading decision.

Opinion writer on 7trade7