Cryptocurrency Market Crashes Amid Soaring US Inflation
The cryptocurrency market saw significant declines on Thursday following the release of the U.S. Bureau of Labor Statistics' Producer Price Index (PPI) report, which showed a 5.4% annual increase in producer prices.
Economists had forecasted a 0.4% increase, but the actual number was slightly higher than expected at 5.3%. Despite some cooling of underlying price growth, inflationary pressures remain high, according to the report.
The major cryptocurrencies - Bitcoin, Ethereum, and XRP - saw significant selling pressure following the report. Bitcoin dropped around 2.7% in the last 24 hours to trade at $77,300, while XRP fell about 3.9% to just over $1.37. Ethereum tumbled around 2.1% to $2,450.
The increased bearish momentum is a concern for buyers, and if they are unable to support the price, further declines could be on the horizon. The Federal Reserve's policy meeting on September 15-16 is now being closely watched, with markets pricing in a 74% chance of a rate hike to a 3.75%-4.00% range.