The recent Consumer Price Index or CPI indicated the rise in inflation in the US and the rest of the world, causing Bitcoin prices to show a bearish pattern consistently. Nonetheless, developers are unbothered and actively building their projects, calling the current market a passing term.
Remember when the market crash happened in February and then the LUNA ecosystem collapsed? Everyone was panicking over the prices. Every day you would read thousands of exclusives about how the declining market was leading to the downfall of the overall industry.
This bear market and crashes have continued even in October, which is considered a bull month by many experts. The recent CPI report didn’t help the prices to go up. Neither the past years’ Octobers made a difference to the current market.
Does this mean the industry is stagnant? Wrong! Ever since the market crash, the development side has been actively working day and night to mature the industry.
NFTStudio24’s Expert Alliance member and co-founder of Virtua, Jawad Ashraf said that the crypto market is always in cycles, and developers are currently focused on building Web3.
Consumer Price Index Report
The recent CPI report for September 2022 shows an increase in inflation to 8.2%, which is one percent higher than predicted.
CPI report holds quite an importance to the traditional and digital market. It is closely analyzed by traders and stakeholders because a rise in inflation means the stock and Bitcoin prices are most likely to drop as well.
According to the Biden administration, the CPI report shows no indication of inflation, in fact, recovery from it. In a recent interview, Biden claimed that America’s economy is “strong as hell” instead he worries about the world.
But how did the market react to this CPI report:
Bitcoin drops 4%
As soon as the report came out, Bitcoin (BTC) prices pummeled down further to 4%. The coin has shown no bullish pattern for months and this report resulted in yet further reduction of price.
Nonetheless, this drop was temporary because the world’s largest cryptocurrency rose again to its previous price. Currently, the coin is trading at $19,245 with a low of $19,118.
With Bitcoin, the stocks mainly the U.S. dollar, the Nasdaq 100, U.S also dropped for a short time and then rose again. The S&P 500 pummeled down but then maintained its position at 4.7% by the end of the day. Experts believe that traditional stocks are displaying more volatility than Bitcoin.
Other cryptocurrencies
The crypto market isn’t just about Bitcoin, other coins are also highly affected by the CPI report. Based on CoinMarketCap, cryptocurrencies like Ethereum (ETH), Solana (SOL), Polygon (MATIC), Binance coin (BNB), and many more dropped to lower rates but then picked up again.
Final words
So the question arises since the US claims to have a low inflation rate, will the Bitcoin market pick up for the next CPI report? The answer to this question is we’re not really sure. October might be full of surprises so nothing can be said.
However, experts believe the crypto market won’t be showing improvements any time soon. Most have predicted the prices to go up in 2023. Will Bitcoin be able to prove them wrong?
