Yesterday, the US Fed shared the Consumer Price Index Report showing a drastic drop to 8.3% compared to last month, resulting in a crypto market crash. BTC dropped 8.69%, ETH declined 5.90%.
Just when Bitcoin was hiking up slowly, the CPI brought the prices down again. This month, the crypto market hasn’t been doing much good compared to August. All hopes are attached to the Merge.
Based on the economists, the inflation rate was expected to rise to 75 or 100-basis-point key rate; however, the report came out with an increase, giving an unexpected turn on the Bitcoin prices.
Many experts say BTC and crypto market have nothing to do with the traditional economy but the frequent crashes due to the CPI decline have convinced people that Bitcoin won’t be stable anytime soon.
Since the beginning of the year, Bitcoin hasn’t shown much improvement and continuously traded between $18k to $22k for many months with ups and downs, affecting its market cap.
Will Bitcoin ever maintain a consistent price? Sandy Carter, SVP of Unstoppable Domains, says she doesn’t expect BTC prices to go up until 2023.
But prices might go up before 2023 due to the upcoming Ethereum PoS Merge this week. Many experts believe ETH prices will hike up once the merge happens, while clothes think there’s a risk of fall.
Whatever the case may be, the Bitcoin hype has died down a bit because of the drastic drops in 2022. In the last 24h, Bitcoin fell from its $22k price to $20k, causing much loss to big traders.
Experts believe the BTC prices will most likely drop even further in the coming weeks.