World News

US Inflation Jumps 8.2% — Stocks, Bitcoin (BTC) Tank

The latest CPI report has sent stocks and crypto markets tanking.

YEREVAN (CoinChapter.com) — The latest Consumer Price Index (CPI) report is out and sending shockwaves in the markets. Overall inflation in the United States jumped to 8.2% through September, more than the 8.1% expected by economists. Although it comes as a slight moderation from the 8.3% increase in the year through August, the rate remains high.

Moreover, the core inflation, calculated after removing food and energy costs, rose to a one-year rate of 6.6%. This is above expectations of 6.5% and the previous month’s figure of 6.3%, making it the highest since 1982.

Thanks to the new figures, the country’s stock markets have tumbled upon fears of new rate hikes by the Fed. Gold prices also dropped more than 1.5% to a two-week low. 

The cryptocurrency market also steps into a pool of red, with leading tokens Bitcoin (BTC) and Ethereum (ETH) shedding 4% and 5%, respectively. 

Everything has become more expensive, thanks to global inflation

The data is a huge blow to the Federal Reserve, which has been fighting inflation since it reached a 40-year high. Monthly inflation figures are even more worrying as they help understand the price rise in real-time. 

Overall inflation jumped 0.4%in September, more than August’s reading of 0.1%. The core index also climbed 0.6%, exposing the slow pace of the Fed in fighting it.

Recommended: Germany Inflation Hits Record Highs As Energy Prices Surge

Fed To Increase Interest Rates Again?

The latest figures have sent speculations in the market that Federal Reserve Chair Jerome Powell and his team will hike interest rates yet again. Central Banks will also focus on lowering the inflation that hit the economy over 1.5 years ago.

The US Fed has raised interest rates this year to beat the worst inflation in four decades. The new figures, however, are likely to bolster calls for higher interest rates. 

The 8.2% inflation rate will have negative spillovers, experts believe.

Recently-released minutes of the Federal Open Market Committee (FOMC) meeting from September 20-21 also give similar indications. 

“Many participants noted that, with inflation well above the Committee’s 2 percent objective and showing little sign so far of abating…they had raised their assessment of the path of the federal funds rate…needed to achieve the Committee’s goals,”

 the minutes read. 

Stocks and Government bonds in the US also sold off following the news. Wall Street’s broad S&P 500 slid 2%, while the Nasdaq Composite dropped over 2.5%. Dow Jones also fell 500 points following the report.

US Stocks have crashed since the latest CPI report.

Bitcoin (BTC) Red, Cryptocurrencies Tank

As fear took over the markets, the cryptocurrency industry, led by Bitcoin (BTC), took a hit. The price of the world’s largest crypto by market cap sild 4%, falling from around $19,026 to $18,319. 

Ethereum (ETH) also fell over 5%. At the time of the news, it fetched around $1286. However, the CPI report sent the ETH price tumbling to $1,209. 

The price of Bitcoin (BTC) tanked as the US Consumer Price Index (CPI) report painted the markets red. Credit: TradingView

The fall in Bitcoin’s price also impacted other altcoins. Data on CoinmarketCap showed a sea of red for all major tokens. 

However, there seems to be more bad news for Bitcoin and Co. Should the Federal Reserve hike interest rates, Bitcoin will see a further slide in its price. According to some experts, the price of BTC can fall to as low as $11,000 in the long run, creating more havoc for the crypto industry. 

Meanwhile, click here to find the best practices to protect your tokens from crypto hackers.

Recent Posts

Roger Ver, ‘Bitcoin Jesus’, Nailed With Indictment by DOJ

The US DOJ is seeking Roger Ver's extradition from Spain following his recent indictment for…

11 hours ago

Why is Bitcoin price down today?

Recent legal and regulatory updates combined with on-chain bearish cues might be the reason why…

12 hours ago

Polkadot-native Acala Expands to Multichain Horizons Through The Sinai Upgrade

Auckland, New Zealand, May 1st, 2024, ChainwireAcala Network releases a new technological roadmap displaying the…

13 hours ago

Maximizing Profits in 2024: A Comprehensive Look at ValueZone.AI

ValueZone has become a top choice in the cryptocurrency market for its array of tools…

14 hours ago

New meme coin launch $ROCKY surges past $20M Market cap in 3 days, defying the market trends

London, UK, May 1st, 2024, ChainwireThree days into its existence, $ROCKY, the latest meme coin…

14 hours ago

Established Giants vs Emerging Contender, KANG Soars Leaving ETC and RUNE Behind

The dynamic crypto market is a battleground where established giants and emerging contenders vie for…

14 hours ago