BTC, ETH Prices Plummet Ahead of US CPI and ECB Rate Decision
The price of Bitcoin (BTC) has dropped by 1.75% to $79,599 on September 5, while Ethereum's (ETH) price is down 2.45% to $2,455.
This downturn comes ahead of the US CPI data release on September 11 and a potential rate hike by the European Central Bank (ECB), which markets are pricing in with a 100% chance for a 25 basis point increase on September 10.
The market is anticipating the Fed's decision, but the ECB's move could push Bitcoin and Ethereum prices lower due to hawkish central bank decisions typically causing investors to shy away from risk assets.
In contrast to inflation concerns, data shows that there were inflows to both Bitcoin and Ethereum ETFs on September 4, totaling $174 million for BTC and $26 million for ETH. This suggests institutions are ignoring the hawkish outlook and may be focusing on market pricing in minimal impact from a rate hike.