Cryptocurrency prices fell sharply in today’s trading session as markets reacted to the latest US inflation report. Bitcoin has dropped more than $2,000 in the past 24 hours, as consumer prices fell less than expected in the United States. Ethereum is also in the red as the token drops below $1,600.
Bitcoin (BTC) was trading lower in today’s session, as the market continued to react to the latest US inflation report.
Following a high of $22,673.82 on Tuesday, BTC/USD fell to an intraday low of $20,062.67 earlier today.
Markets had expected August’s consumer price index (CPI) to come in at 8.1 percent, down from 8.5 percent the previous month.
However, with the CPI at 8.3%, the confidence of traders is waning, leading to a bloodbath in the crypto market.
Looking at the chart, this sell-off followed a false break of the $22,600 resistance point, with the price currently hovering around a key support point.
When writing, BTC/USD is trading at $20,164.21, slightly below the $20,600 floor.
If the bearish sentiment persists throughout the day, we could see traders targeting the lower support of $19,300.
Ethereum (ETH) has also suffered a strong onslaught of downtrends, as the token dipped below $1,600 a day before the start of the much-anticipated The Merge event.
Less than 24 hours after hitting a high of $1,637.05, the world’s second-largest cryptocurrency fell to a low of $1,564.03 on Wednesday.
The drop in ETH/USD shows the token hitting its lowest point last week, bringing it near a long-term floor of $1,550 in the process.
The bulls have so far resisted a breakout below this point, with many opting to re-enter and buy into the current drop.
As written, ethereum is currently trading at $1,594.08, with bulls possibly hoping to regain the price above $1,600.
Many people still expect that ETH will recover in the coming days, remaining optimistic about tomorrow’s Consolidation and the long-term effects it could have.
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