Bitcoin Crashes Towards $20K on Inflation (CPI) Numbers: Market Watch
Although the US CPI data was quite close to the estimated target, it still had a vigorous effect on BTC’s price, which dumped towards $20,000.
The alternative coins are also deep in the red, with Solana – yesterday’s top performer – slumping by double digits today.
Bitcoin Dips to $20K
The past several days were going quite well for the primary cryptocurrency. The asset had tumbled to $18,500 in the middle of last week but began its gradual recovery almost immediately.
As such, it spiked above $20,000 before the working week’s end and jumped to $22,000 during the weekend. Even more gains came on Monday and Tuesday as it charted a multi-week high above $22,600.
This is where the landscape changed as the US announced an inflation rate of 8.3% for the month of August. This was just 0.2% higher than the estimations, but bitcoin reacted with a sudden price dump.
The asset lost the $22,000 line and slumped even lower. As a result, it briefly dipped below $20,000 (on Bitstamp) earlier today for the first time in a week.
As of now, it stands just north of that coveted level, but its market capitalization has plummeted way below $400 billion, and its dominance over the altcoins has declined by 1% in a day.
Altcoins Deep in Red
Most altcoins were doing just fine lately, but the US CPI numbers brought them down as well.
Ethereum, ahead of the upcoming Merge, jumped above $1,700 and remained there for several days. However, the second-largest crypto plunged by more than 6% in the past 24 hours and now struggles to maintain $1,600.
Similar daily nosedives are evident from Binance Coin, Ripple, Cardano, Polkadot, Dogecoin, Shiba Inu, Polygon, and Tron. Solana, on the other hand, has dumped by over 11% in a day from $40 to $33.
The situation with the lower- and mid-cap alts is quite identical. ATOM, NEAR, APE, and FLOW have emerged as today’s biggest losers with double-digit declines.
The crypto market cap has seen over $70 billion gone in a day, and the metric is now down below $1 trillion.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.