- Crypto market leaders BTC and ETH both experience daily price drops.
- CPI figures have increased 8.3 percent, which is more than analysts had anticipated.
- The cost of core goods and services have also increased 6.1 percent in August.
Crypto market leaders, Bitcoin (BTC) and Ethereum (ETH), have seen their prices drop 8.39% and 6.35 % respectively over the past 24 hours, according to CoinMarketCap. At the time of writing, BTC’s price is standing at $20,354.63 and ETH is trading at $1,602.24.
The entire crypto market has entered into a period of flat trading and declining prices. This drop in crypto’s performance comes after several new highs (ATH) were set by the likes of BTC, ETH, Binance Coin (BNB), and several others.
It is believed that inflation is the main driving factor behind the negative performances seen in the crypto space, with analysts stating that inflation has risen by two fold to what was initially anticipated by economists. Furthermore, the Consumer Price Index (CPI) for August increased to 8.3 percent when it was expected to increase to only 8.1 percent.
The costs of core services and goods also saw an increase of 6.3 percent in August after analysts anticipated a 6.1%increase for the month.
Although BTC was designed to respond inversely to inflation, the increased costs of living over the last month have resulted in a large quantity of sell volume entering the market – pushing the prices of all of the top 10 cryptos down, including the market leader BTC.
On the other hand, the long-awaited Merge of ETH – the second biggest crypto by market cap – is scheduled to take place in less than a day. The build up to the launch of this upgrade has seen people take profits on their ETH positions – asserting pressure on the altcoin’s price.
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