The United States Bureau of Labor Statistics, (BLS), is the current authority. published The latest inflation numbers with the Consumer Price Index for urban consumers increasing by 0.4% in September.
Per the data, the CPI increased by 8.2% year-over-year, and going by the 8.3% recorded for August, we can say the Federal Reserve’s efforts to taper down this soaring inflation are not yielding much fruit.
The hot inflation figures sent the market tumbling down upon release with the futures tied to the Dow Jones Industrial Average, S&P 500 Index, and the Nasdaq Composite showing red. This wide market reaction sent chills down to the digital currency ecosystem. Bitcoin You will feel comfortable dropping below the $19,000 Support zone as low as $18,319.82
As investors choose not to worry about the possible impact of inflation on global financial markets, the initial shock is fading. Bitcoin has shown some remarkable recovery, although not as fast as $98million. recorded Since the CPI data were first published, liquidation.
What to expect in the future
The Federal Reserve and other agencies consider inflation to be the enemy. Central Banks Monetary policymakers around the globe will continue to try to raise interest rates to offset the rising cost of goods.
The Federal Open Market Committee (FOMC), can be pushed to action by the fact that inflation numbers are not declining. The interest rate should be increased It announced additional 75 basis point announcements four times this fiscal year.
The volatility might be overstated by the digital currency industry, as bulls recognize that interest rate increases can bring about a recession. This will in the long term benefit crypto-proponents. The good news? Fed officials aren’t as worried about recession as they would be if inflation doesn’t abate in the immediate term.
As of the date of writing Ethereum It traded at $18,319.82. That’s a drop of 2.985 in 24 hours. Binance coin (BNB) was also traded. changing hands at $267.57 After a drop of 1.29%
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