Home Analysis

Market Watch Oct 14: Bitcoin Makes A Comeback After Falling 5%, Inflation in U.S Rose 0.6%.

Crypto Market Watch

Bitcoin became uneasy and lost 5% of its value slipping to $18,000 level after the Consumer Price Index Report showed inflation in the U.S rose by 0.6% in September. This caused $55 million in Bitcoin futures liquidations at derivatives exchanges. The BTC price dip lasted less than five hours.

At the time of writing this article, Bitcoin regained 3.81% in the last 24 hours and was trading at $19,811. Ethereum was changing hands at $1,327 after having gained 3.36%. The altcoins have also recorded gains. Ripple’s XRP is up 5.88%, Solana 3.92%, Cardano 3.70% and Polkadot 2.53%.

Jon Campagna, head of trading and capital markets at CoinFund, said there has been a culmination of a month-long build-up in protection purchasing and a build up in implied and realized volatility. He noted the pronounced declines in Bitcoin and Ether one-day trading volumes from the previous night following the CPI report. There was a similar dynamic in equities markets. Campagna said the CBOE Volatility Index declined 4.5%. He pointed out that the CPI number was hot, an unexpected level of hot which caused a relief rally as the put protection was sold and books were adjusted to slightly increase risk.

Moreover, crypto prices coincided with equity markets, which also sank early before rebounding with a vengeance with the tech-focused Nasdaq, S&P 500 and Dow Jones Industrial Average jumping over 2% to break six-day losing streaks. Bearish sentiment remains after the CPI report came out.



Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.