The US authorities have published a new Consumer Price Index. Inflation turned out to be higher than expected, which led to a collapse in the markets for risky assets. Bitcoin lost 5.3% and is trading at $21,380.
Analysts expected inflation in the US to slow down by 0.1% in August, but prices, on the contrary, rose by 0.1%. On an annualized basis, inflation was 8.3%. This is less than in July, when the figure was 8.5%, but significantly higher than the forecast of 8.1%.
Such data suggests that the measures taken by the US Federal Reserve to tighten monetary policy have not been as effective as we would like. In turn, investors, including institutional ones, began to transfer funds from risky assets to more reliable instruments – fiat money, precious metals and bonds. But the cryptocurrency and stock markets were under significant pressure.
Of course, not only bitcoin has declined. So, ETH fell immediately by 7.1% and now the second cryptocurrency is trading at $1,615. Binance Coin lost 4.7%. Among the top coins, SOL turned out to be the leader in terms of falling – the cryptocurrency fell by 7.75% in an hour and is now trading at $35.5. By 17:45 Moscow time, bitcoin was trading at $21,101.
At the end of August, JPMorgan strategist David Kelly said that until the US Federal Reserve developed a plan to exit the economic crisis, investors should avoid investing in cryptocurrencies.
Source: Bits
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