Major cryptocurrencies traded mixed on Thursday evening as the Consumer Price Index (CPI) for September experienced a 0.4% increase. This surpassed economist estimates of 0.3% and was slightly lower than the previous month’s 0.6% rise.
On a year-over-year basis in September, the CPI increased by 3.7%, slightly higher than the forecast of 3.6%, and similar to August’s rate of 3.7%.
When CPI rises, it indicates an increase in the overall prices of goods and services, which reflects inflationary pressure on the economy. This can affect purchasing power, savings, and the overall cost of living, leading to potential economic challenges.
The global crypto market cap currently stands at $1.05 trillion, reflecting a decrease of 1.74% in the past 24 hours.
Stocks experienced a decline on Thursday due to concerns over rising Treasury yields and the release of new data indicating ongoing U.S. inflation.
The S&P 500 dropped by 0.62% to end at 4,349.61, while the Nasdaq Composite, known for its tech focus, experienced a 0.63% loss, finishing at 13,574.22. This downward movement marked the end of a four-day winning streak for the major indexes.
On the same day, there was a significant increase in Treasury yields, driven by the recent inflation data. The benchmark 10-year rate rose nearly 11 basis points to reach 4.70%, while the 2-year Treasury yield also increased, trading at 5.06% after rising by more than 6 basis points.
Crypto analyst Michael Van de Poppe said it appears that Bitcoin is currently lacking strength. The upward momentum seems to have come to an end, with the price being rejected at $27,000. “Upwards momentum ending in rejecting at $27K, so probably we’ll test some lower levels before we’ll have a reversal. CPI day as well!”
#Bitcoin doesn’t show strength.
Upwards momentum ending in rejecting at $27K, so probably we’ll test some lower levels before we’ll have a reversal.
CPI day as well! pic.twitter.com/cWRokntpFS
— Michaël van de Poppe (@CryptoMichNL) October 12, 2023
According to the pseudonymous crypto analyst Altcoin Sherpa, the current market situation is quite peculiar. “Bizarre market overall. Altcoins aren’t really budging on this current move down for BTC; I think it’s because many of them already had strong sell offs the last week or so.”
Bizarre market overall. Altcoins aren’t really budging on this current move down for $BTC; I think it’s because many of them already had strong sell offs the last week or so. Stuff like $ARB has already full retraced its previous move. pic.twitter.com/yUdg8qv4dj
— Altcoin Sherpa (@AltcoinSherpa) October 11, 2023
Another pseudonymous analyst Kaleo said there are some noteworthy developments in the world of Bitcoin and equities. “BTC on the brink of losing support maybe we finally get to have some fun.”
equities finally starting to dip
BTC on the brink of losing support
maybe we finally get to have some fun pic.twitter.com/Yyz9raHKXH
— K A L E O (@CryptoKaleo) October 12, 2023
Santiment, an on-chain analytics platform, said the rate of Ethereum discussions on platforms such as X, Discord, Telegram, Reddit, and 4chan has significantly increased since late September. Furthermore, there has been a spike in Age Consumed, indicating a substantial movement of previously inactive ETH in just one month.
The rate of #Ethereum discussions on #X, #Discord, #Telegram, #Reddit, and #4chan have been much higher than usual since late September. Additionally, there has been an Age Consumed spike, showing the most dormant $ETH has moved in a month. https://t.co/jDtfuB9yeI pic.twitter.com/4tP0GrXNcr
— Santiment (@santimentfeed) October 12, 2023
Produced in association with Benzinga
