Bitcoin Down 10% Following The Report on August’s CPI
Image courtesy of 123rf.

Bitcoin Down 10% Following The Report on August’s CPI

Tuesday saw the biggest drop in BTC price since June.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

The price of Bitcoin fell by 10% on Tuesday, September 13th after the U.S. Bureau of Labor Statistics published a report stating that the consumer price index (CPI) for August stands at 8.3%. The day saw massive liquidations and price drops across a multitude of cryptocurrencies

Bitcoin’s Dramatic Drop on Tuesday

After a weekend rally kickstarted on Friday that brought the world’s biggest crypto up to more than $22,000 from last week’s low of just under $19,000, Tuesday saw a rapid and massive drop. The collapse of price started around 8:30 AM when Bitcoin was valued at $22,719 and continued for most of the day. By 5 PM it stood just above $20,200.

The price collapse started as soon as the CPI report for August was released. The effect of the Bureau’s publication was further exacerbated by the high likelihood that the Fed will make its third interest rate hike, estimated at 75 BPS.

The news had a negative impact on the entire market. Both the Dow Jones Industrial Average and S&P 500 fell by around 4%. The effects on the prices of cryptocurrencies were worse still with most of them facing a significant drop.

Join our Telegram group and never miss a breaking digital asset story.

A Widespread Crypto Liquidation

Bitcoin wasn’t the only crypto suffering a sharp drop throughout Tuesday, Ethereum fell around 7% from a value of $1,754.99 just before the report was released, down to under $1,600. According to the data from Coinglass, most cryptocurrencies went through mass liquidations in the past 24 hours.

The total value of liquidations is estimated at over $350 million. Bitcoin accounts for more than #130 million, and ETH is a close second at nearly $122 million. The massive volume and volatility allegedly caused technical difficulties for some major exchanges. Coinbase reported that some customers were having issues with simple trades starting just after noon.

The issue with failed transactions was reported to have been resolved several hours later on the Coinbase Support Twitter account.

Finance is changing.
Learn how, with Five Minute Finance.
A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.

When do you think Bitcoin will stop dropping? Let us know in the comments below.

Cookies & Privacy

The Tokenist uses cookies to provide you with a great experience and enables you to enjoy all the functionality of the site.