Bitcoin, the largest cryptocurrency by market capitalization, dropped over 4% at 9.40 p.m. Hong Kong time, after the U.S. Bureau of Labor Statistics reported that the consumer price index (CPI) had inched up 0.1% in August from July.
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Fast facts
- The slight uptick came after the CPI remained unchanged in July, the statement said. Prices in August rose 8.3% on the year.
- Nine of the top 10 cryptocurrencies traded in the red after the release of CPI data, according to data from coinmarketcap.com.
- The S&P 500 (SPX) declined 1.97% and the Nasdaq Composite dropped 2.76% after markets opened on Tuesday.
- Gains and losses in those indexes often correlate with Bitcoin prices.
- The Federal Reserve is likely to increase interest rates by another 0.75 percentage point this month as Chairman Jerome Powell pledged to return inflation to 2%.
See related article: Crypto volatility hasn’t had macroeconomic implications so far: Jerome Powell
