Crypto Plummets As CPI Worsens, Any Chance For Reversal?

Crypto prices have maintained a strong correlation with most macroeconomic factors. It’s no longer debatable that inflation affects the trend in the crypto market. Most past digital asset declines took root from the swing in the general global economy. The intensity of the crypto winter through the year’s first half had accumulated strength from potential inflation. However, due to the suspicions of inflation rise in the economy, crypto prices have shown signs of decline. The recent data on CPI have even pushed the market to another red region. Related Reading: Bitcoin Must Hold This Level Or Risk Falling To $10,000 The Consumer Price Index (CPI) is an economic indicator that measures inflation through the movement of the cost of goods and services. The percentage increase in the CPI over a given period provides the economy’s inflation rate for the given time. However, the report for July brought a slight relief as CPI indicated almost zero impact on inflation. With the positive significance of July’s information on the crypto industry, lots of hope got high. Many participants expect a more favorable result for August, but their expectations have been squashed. CPI Data Gets Below Crypto Community Expectations Finally, August’s released CPI report contradicts the crypto space’s expectations. The result revealed a 0.1% MoM change and an 8.3% YoY change, indicating a wrong value for the indust...