Bitcoin (BTC) crashed below $22,000 instantly on Sep. 13 after United States inflation data failed to meet estimates.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD swiftly falling $1,000 after Consumer Price Index (CPI) inflation for August came in at 8.3% year-on-year.
Consensus had agreed that 8.1% would be the latest figure, and the overshoot suggested that inflation was not slowing at the expected pace.
US CPI for August YoY coming in above expectations at 8.3% (expected 8.1%) but lower than in July with 8.5%.MoM core CPI coming in hot at 0.6% twice as high as the expected 0.3%.Not what the Fed wants to see.So 75bps it is at the next meeting?
Nonetheless, versus July, year-on-year growth was still down 0.2%, preserving the overall trend of slowing CPI inflation.
This was not enough to avoid a crypto rout, however, and at the time of writing, Bitcoin was below $21,500, down 4% on the day.
As market participants increased bets on a further 75-basis-point and even a 100-point rate hike from the Federal Reserve next week, cold feet were increasingly noticeable ahead of the Wall Street open.
This is just a test of the real
"Lots of volatility around these events and a ton of fake-outs do happen," Michaël van de Poppe, founder and CEO of trading firm Eight, responded.
The U.S. dollar index (DXY), strength in which traditionally means headwinds for crypto, saw a flash rebound on the CPI news, passing 109 for the first time since Sep. 9.
On altcoins, pain for Ether (ETH) continued as existing weakness was compounded by Bitcoin's dip.
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