The rally of Ethereum and Bitcoin have simply lost the momentum and their prices has start to fall by almost 4% in last one hour. BTC even declined through above 6% in previous 24 hours and it is also trading recently at $21,934. Here, Ethereum is also trading at the level of $1,751, that is down by more than 7% in last week. On the other hand, recent and latest rally of crypto is basically a result of CPI also known as Consumer Price Index. It is less-than-estimated case of YoY increase related to 8.5% of the CPI revealed the inflated cooling. On the other hand, with the Fed officials that take the hawkish stance. This digital market can also now see some lows.
The Fed officials take a hawkish stance on hike of interest rate for next month. They also have given every such kind of the indication of other 75bps hike. He also made this statement quite clear about the intention of providing the crucial and important downward pressure related to inflation.
Impact of Fed on the Crypto Market
Here, CPI is basically strong indicator related inflation in economy. With the high rate of inflation that is generally followed by the set of the quantitative tightening. It is from Federal Reserve being a measure to control the level of inflation. However, the interest rate of three-quarters of the percentage point of hike caused some kind of bloodbath in entire crypto market. Also, Bitcoin had the worst set of the financial quarter in for more than a decade. Though, further level of high inflation data in following month also do have any kind of the bad impact on market.
The main reason for such kind of the thing was an expectation that the level of inflation has started too simply cool. At the same time, GDP has also shown some kind of negative growth for almost two consecutive quarters. It helps to simply meets the criteria of the technical recession.