The selling pressure of Bitcoin (BTC) rapidly rose after the American government announced the inflation percentage for September. The figure was higher than expected and reportedly caused BTC to lose the $8 billion market due to massive selling.
BTC Records Massive Sellout As US Inflation Rose By 8.2%
According to news, the United States authorities recorded an 8.2% increase in inflation instead of the anticipated 8.1% for September. Consequently, many holders reportedly started their BTC assets as they wondered how the Federal Reserve would manage the increasing inflation figures.
Furthermore, statistics showed that the market capitalization of BTC dropped drastically just a few hours after the announcement. Before the report, the primary cryptocurrency stands at a market cap value of $360.6 billion.
However, at the time of publication, BTC stands at $352.1 after losing about $8.5 billion in market cap per the price chart. In addition, the current inflation figures are not encouraging for investors as the Feds would likely increase interest rates.
And high-interest rates lower the demand for volatile assets like crypto, stocks, and equity. In the latest reports, the year-to-year CPI for September rose to 8.2%, which is higher than the 8.1% expected. Simultaneously, the core CPI reportedly hit the highest value of 6.6%, which it last attained in 1982.
Bitcoin’s Price Continues Dropping In Current Bearish Market
Furthermore, the price of BTC continues to fall as it lost about 4% of its value in the past 24hrs. It currently sits at the price level of $18 250 according to the 24-hour price chart.
Meanwhile, before the new price plunge, many analysts had suggested that BTC has a solid resilient line at $19k & $20k, where it consolidated. However, Tom Dunleavy, a crypto analyst, tweeted that BTC’s price might decline further if BTC miners react negatively to the development.
He added in his tweet that it might drop to 17k if miners dump the market. The Federal reserve has not made any move on the recent inflation report.
In addition, many analysts have shown concerns about the dipping crypto market volatility and repressed asset trading volumes. Some suggested that the overall bearish market might cause another rapid drop in market volatility.