The stock market along with crypto lost value on Tuesday, August 9th due to the expected release of CPI figures. Traders, already skittish due to the see-sawing of markets are keeping a low profile. Information on CPI and inflation figures are expected to influence markets along with the Federal Reserve’s interest rate hikes and potential future hikes.
Elon Musk also suggested earlier in the same week that July’s economic data will tell us if the US is at peak inflation and the type of recession faced. Right now, the general sentiment is that July’s data will be much better and not be as high as 9.1% recorded in June. Prices of energy commodities are lower for July and the Feds are hopeful that their rate hikes will help bring down rising prices.
As expected, ETH, BTC and every altcoin retracted in value as traders stopped buying, pending CPI data. BTC was at a low of $22800 and ETH was trading at $1670. While the rationale that every trader is investing in stablecoins makes sense, technical factors indicate that the pullback is just a normal thing. As a test of lower support after the resistance change in the last week, BTC and ETH are trading within the expected ranges.
A well-known market analyst says that fear of expected CPI data is unwarranted. He also thinks that once the retests are done, BTC should rally and touch the $28,000 mark. Another market expert said that the correction in markets is just because traders are not taking risks. They are waiting for CPI information to be released and the market will bounce back if the figures look better than they did, in June.