By Alicia Maher
Bitcoin and Ethereum have now recovered all the losses they suffered on Thursday. The crypto market’s first two tokens plunged in response to the US consumer price index. The data released by the Bureau of Labor Statistics reported inflation at 8.2%.
Bitcoin Rises to Light
Bitcoin is currently trading at $1,967 as of the time of this report. It has, thus, risen by 3.6% since its decline to $18,347 yesterday.
But the upward movement still has Bitcoin within its yearly low. It trades 71.5% lower from its high level of $69,044 in November 2021.
Ethereum, on the other hand, is the market’s second-largest cryptocurrency by market cap. It performed more than recouping its losses. The token currently sells at $1,327, gaining about 3.8% within the last 24 hours.
But the token is still far beneath its all-time high of $4,878. The Dow Jones and S&P 500 indexes equally regained their lost strength. They both appreciated by more than 2.5% and erased over one week of loss.
The Dow currently sits at 30,038.72 while S&P 500 sits at 3,669.91. it is the single most impressive performance from them in weeks.
Measuring Inflation
Bitcoin and Ethereum, along with most of the crypto market, follow the same pattern as the stock market. This is the result of investors’ flight to seek safe haven in the US Dollar. This also stems from the US Federal Reserve’s anti-inflation campaign which sees interest rates rising.
The crypto market is still staging a surprise comeback from the decline caused by the CPI. The price of goods and services in the US remained high at 8.2% Y-on-Y.
The consumer price index keeps a track of the price rate of such things as gas, clothing, cars, and other goods. It also tracks inflation throughout the economy.
The CPI rose by 0.4% in September as it adjusted seasonally. That development followed a 0.1% rise in August. Almost all items in the US increased their prices, except the gasoline index which dropped by 4.9% since August.
The high rate of inflation means the Federal Reserve will continue with its interest rate increment plan. The market expects another 75 basis points rate hike from the Feds till inflation is curbed. Inflation currently stands at a four-decade high.