Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD) – Bitcoin, Ethereum, Dogecoin crash after ‘burning’ inflation data: Analyst says ‘writing was on the chart’
Bitcoin and Ethereum traded sharply lower Tuesday night as the global cryptocurrency market capitalization plunged 7.5% to $986.4 billion at 8:26 p.m. EDT.
| Coin | 24 hours a day | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | -9.7% | 7.2% | $20,217.87 |
| Ethereum ETH/USD | -7.8% | 0.9% | $1,577.62 |
| Dogecoin DOGE/USD | -6.3% | 1.5% | $0.06 |
| Cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| Terra Classic (LUNC) | +21.8% | $0.00036 |
| TerraClassicUSD (USTC) | +6.3% | $0.04 |
| Terra (LUNA) | +5.2% | $4.23 |
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Why it matters: Major cryptocurrencies fell after the US Ministry of Labour released the inflation figures for August, which indicated that the consumer price index rose 8.3% year-on-year.
Although inflation cooled from the 8.5% increase in July, it came in above average economist estimates of 8%.
Stocks fell on Tuesday, with the S&P 500 and Nasdaq losing 4.3% and 5.2%, respectively. US stock futures were flat at the time of writing.
“Scorching inflation triggered a sell-off in the stock market that is also taking Bitcoin along for the ride,” said Edward Moyaa senior market analyst with OANDAaccording to a memo seen by Benzinga.
“Hopes of a soft landing, the end of the Fed hiking cycle and a resilient consumer are fading. Bitcoin’s dive reminded traders that it remains the ultimate risky asset and is vulnerable if the stock market sell-off deepens.”
Justin Bennettwho had warned investors not to get “too comfortable” yesterday, tweeted that “the writing was on the cards” for cryptocurrencies and stocks.
The writing was on the map. $SPY $SPX $BTC $ETH #stock #Cryptos pic.twitter.com/h7TWBxh4um
— Justin Bennett (@JustinBennettFX) 13 September 2022
The trader cautioned that he believes we still haven’t seen the lows for Bitcoin.
For the record, I still don’t think we’ve seen the lows yet #Bitcoin.$BTC pic.twitter.com/deDaNFnPxJ
— Justin Bennett (@JustinBennettFX) 13 September 2022
Michael van de Poppe said markets are pricing in a 100 basis point interest rate hike by the US Federal Reserve for September.
The markets are pricing in 100bps now for September.
The worst thing is to be priced in.
— Michaël van de Poppe (@CryptoMichNL) 13 September 2022
The cryptocurrency trader said: “Worst is getting priced in.”
Meanwhile, the number of Bitcoin addresses with 10 or more BTC has increased since February, Santiment said.
The amount #Bitcoin addresses with 10 or more $BTC has risen dramatically since mid-February. Over the past 7 months, the volume of these shark and whale addresses has increased by 3.6% on the network, returning to its highest level in 19 months. pic.twitter.com/2CwEUCMgZ3
— Santiment (@santimentfeed) 13 September 2022
“Over the past 7 months, the volume of these shark and whale addresses has increased by 3.6% on the network, returning to its highest level in 19 months,” the market intelligence platform said.
On the Ethereum side, the buzz surrounding the coin’s transition to proof-of-stake continues to be intact. Stripe CEO Patrick Collison said Tuesday that “Merge” was “one of the coolest examples of sustained, ambitious, technically difficult open source development.”
Excited for The Merge! One of the coolest examples of sustained, ambitious, technically difficult open source development. Congratulations and good luck @VitalikButerin and to the Ethereum community. pic.twitter.com/XGh4tWcmEG
— Patrick Collison (@patrickc) 13 September 2022
Read next: Investors worried about merger as Ethereum leads Bitcoin in $62 million crypto outflows
