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Hot CPI report puts a dent in Bitcoin and Ethereum rally, stocks also lose ground

Hot CPI report puts a dent in Bitcoin and Ethereum rally, stocks also lose ground

Crypto and stock markets are feeling the pain after the Sept. 13 inflation report printed an unexpectedly hot figure that showed headline inflation rising by 0.1% month over month.

Even with gas prices falling to multi-month lows and a cooling housing market, core inflation saw a 0.6% month over month bump and year to year inflation sits at 8.3%.

While market participants and investors had estimated the next Federal Reserve interest hike to be a hefty 0.75 basis points, many also subscribed to a loosely held assumption that today’s CPI report would come in softer than projected.

Given that the market had supposedly “priced in” a 0.75 bps hike, crypto traders expected Bitcoin, Ethereum and select altcoins to breakout to the upside.

Well, obviously the complete opposite occurred.

The Dow slid about 2.6%, while the S&P 500 and Nasdaq fell 2.9% and 3.6% respectively. Naturally, risky assets also fell and Bitcoin price gave up more than 50% of its recent weekend gains with a 9% pullback to $20,350. With just 1 day left before the Merge, Ethereum price also pulled back 7.29% to $1,590, and the majority of cryptocurrencies in the top-100 are nursing single to double-digit losses at the moment.

While Bitcoin’s weekend rally from Sept. 9 extended into the start of this week and price pushed as high as $22,800, earlier analysis cautioned that BTC was also trading near a key overhead resistance.

As seen below, the multi-month resistance from BTC’s all-time high held as price crumbled at $22,400 when the market opened and the monthly CPI data hit media outlets. The analysis also highlighted the “successive bear flag continuation” trend that has been in play since Bitcoin price topped out at $69,000 on Nov. 10, 2021.

BTC/USDT 1-day chart. Source: TradingView

Barring an extremely bullish Merge event, the most likely direction for Bitcoin remains to the downside.

A positive point to note is, despite today’s correction, Bitcoin price continues to chop about in its 90-day range (pink box) between  $25,400 and $17,600. From my vantage point, there’s “nothing to see…

Click Here to Read the Full Original Article at Cointelegraph.com News…