Bitcoin Dips After Key Inflation Indicator Rattles
By Kapil Rajyaguru
Bitcoin dropped sharply in early Saturday morning trade, dragging the rest of the digital asset market with it—after key inflation data came in and seemingly rattled investors.
The biggest cryptocurrency is currently down 3% in 24 hours, trading for $23,170, Coinmarketcap data shows. Just last week, it broke above $25,000 per coin for the first time in eight months.
Most other cryptocurrencies have also taken a hit: Ethereum has shed 2.57% in the past day, trading hands for $$1,600; Dogecoin is now priced at $0.081—a 3.67% 24-hour drop.
Cryptocurrency is following the U.S. equities market as it typically does. Investors shifted “risk-on” assets like stocks and digital assets after key inflation data came in on Friday and showed that more interest rate hikes by the U.S. Federal Reserve could be coming.
Friday’s report showed that inflation in the world’s biggest economy increased: the personal consumption expenditures price index rose 5.4% from last year and the core metric was up 4.7%.
Equities investors reacted by selling: the Dow Jones Industrial Average fell by 390 points, or 1.2%, while the S&P 500 dipped 1.6% and Nasdaq Composite by 2%.
Investors tend to avoid “risk” like Bitcoin and instead plug money into “safe-haven” assets like the U.S. dollar: the dollar index jumped 0.5% Friday, its highest in nearly two months.
3Verse’s IC15 Index was trading at 32880 points down by 3.18%
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