Fuel and shelter drive August CPI higher
Bitcoin (BTC) experienced sudden volatility on September 13th following the release of United States macroeconomic data that showed inflation surpassing expectations. The Consumer Price Index (CPI) for August came in at 3.7% year-on-year, which was 0.1% higher than forecast. The increase was primarily driven by the rising cost of fuel and continued advancement in the shelter index, which has been on the rise for 40 consecutive months.
Inflation concerns pressure crypto market
Market participants had warned earlier in the day that a high CPI reading would put pressure on the crypto market, as it would suggest that inflation was persisting more than anticipated. This could potentially impact future economic policy. Traders expressed concerns about inflation, with one popular trader predicting that the next CPI reading would surpass 4% due to rapidly increasing gasoline prices. Inflation remains a significant problem going forward.
Bitcoin bid liquidity remains low
Prior to the release of the CPI data, Keith Alan, co-founder of on-chain monitoring resource Material Indicators, expressed optimism about the momentum of BTC price for the week. However, he noted that there was still a lot of technical resistance above the current price range. The BTC/USD market lacked a clear trend, and volatility was expected as Wall Street opened. The order book on the largest global exchange, Binance, showed modest liquidity around the spot price, with more bids at $25,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
