BackBloodbath in crypto market after hot inflation data; Bitcoin lowest in 3 weeks
Broadly, the cryptocurrency market are in volatility tone due to US inflation which advanced to a 4-year high in September. Since May this year, the correlation between equities and Bitcoin has remained high.
PremiumBitcoin is in a bloodbath and the largest cryptocurrency in the world is currently at its lowest level since September 22. Broadly, the cryptocurrency market are in volatility tone due to US inflation which advanced to a 40-year high in September. Since May this year, the correlation between equities and Bitcoin has remained high.
Bitcoin has fallen to as low as $18,319.82 in the intraday trade on CoinMarketCap. The last lowest level of Bitcoin was at the $18,415 level witnessed on September 22 this year.
At the time of writing, Bitcoin is trading at $18,928.52 lower by 1.07%. The market cap of this crypto is currently at $363.73 billion.
Due to the latest selloff in Bitcoin, the crypto's weekly decline is nearly 6%.
Counterpart Ethereum declined by over 3% and was trading near $1,257.11. Its weekly drop is nearly 8%.
Overall, on CoinMarketCap, the global crypto market cap is around $901.85 billion down by 2.18% over the last day. The total crypto market volume, however, surged by 41.73% to $68.27 billion over the last 24 hours.
Further, BNB fell by over 1%, while XRP and Cardano shed nearly 4% each. Solana and Dogecoin are down by around 5% and 3% respectively.
Among the top underperforming cryptocurrencies are --- Convex Finance down nearly 11%, while Klaytn and STEPN plunged nearly 10% each. Ravencoin and Waves dipped over 6% each.
Meanwhile, among the best performers were --- Huobi Token surging by nearly 19%, and TerraClassicUSD soaring by nearly 7%. Ethereum Name Service, OKB, and Bitcoin SV jumped between 3-4%.
US inflation came in at 8.2% in September 2022 -- moderating for the third consecutive month. Also, inflation is the lowest in seven months. However, inflation pressure remains elevated and above 40 years high.
The core consumer price index, which excludes food and energy, increased 6.6% from a year ago, the highest level since 1982, according to data released by the US Labor Department showed Thursday.
A total of 142 basis points of rate hikes are now priced in for the next two policy meetings, just short of consecutive three-quarter-point hikes.
Investors are cautious ahead of FOMC minutes which will give more clarity on further hawkish stance of the US Fed.
Vetle Lunde analysts at Arcane Research on October 11 in his report for long-term outlook said, "BTC is on track with previous bear market trajectories, as we’ve seen a 70% drawdown from its November ATH. While previous bears have pressured us lower from peak to through, and this bear might be pushed lower as well, I am fairly confident in more aggressive incremental purchases in the current state of the market."
Lunde's note explained that once the FED has reached an appropriate restrictive interest rate level and inflation shows clear signs of slowing, crypto may again find room to see a substantial recovery. The next year will likely bring idiosyncratic crypto-related regulatory clarity in the U.S., and in a more stable interest rate and inflation regime, this may funnel a new cycle of growth.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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