“Bitcoin collapsed to $118 thousand amid inflation data expectations: detailsBitcoin fell by 2.8% to $118,630.4 on Tuesday, August 12, due to traders withdrawing funds from the market. This happened in
anticipation of key inflation data from the US Consumer Price Index.
”, — write: unn.ua
DetailsAs stated in the publication, losses in Bitcoin and cryptocurrency prices occurred amid a broader decline in risk-exposed assets. This became possible as traders withdrew some money from the market in anticipation of key US Consumer Price Index inflation data.
It is also reported that the higher the inflation, the more likely it is to undermine recent bets on an interest rate cut by the Federal Reserve in September.
At the same time, in the US, inflation data is expected to influence the Fed’s plans for interest rate cuts, and Bitcoin and cryptocurrencies will react positively to greater market confidence in rate cuts.
AdditionFintech expert and co-founder of Ukraine’s first fintech ecosystem Concord Fintech Solutions Olena Sosiedka explained in a comment to UNN that cryptocurrency has long ceased to be perceived as a “speculative asset” and functions as part of the global macro-financial ecosystem.
She added that digital assets react with growth to positive expectations, especially when it comes to potential easing of regulatory pressure or strengthening institutional trust. The fintech expert emphasized that crypto is an indicator of financial and political conjuncture.