Bitcoin and ether see major price swings following US inflation report

Quick Take

  • Bitcoin and ether spiked following Wednesday’s CPI report in the US before dropping much more significantly.
  • Inflation in the US rose 9.1%, representing a 40-year high.

Bitcoin and Ethereum whipsawed on Wednesday following a red hot inflation report of 9.1%.

Bitcoin briefly jumped above $20,000 initially following the report, before plunging as low as $19,046 (and below $19,000 on some exchanges, like Binance). At the time of writing, bitcoin was trading hands at $19,191, down 3.2% in the past hour according to CoinGecko. 

Ether, the native cryptocurrency of the Ethereum network, also saw its price spike towards $1,100 before surrendering its gains on Wednesday. It's currently trading down 4.5% at $1,031, according to CoinGecko.

The crypto market has come under persistent downward pressure following the collapse of the Terra blockchain in May and a liquidity crisis for crypto lending platforms in June. Bitcoin registered its worst quarterly decline in 11 years amid this market turmoil, dropping 56% during the second quarter of this year.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.