Cryptocurrency prices dropped Thursday to new October lows after key U.S. inflation data came in hotter than expected.
The price of bitcoin fell 4% to $18,388.00, and ether slid 6% to $1,216, according to Coin Metrics.
Bitcoin dropped below $19,000 early on Thursday as investors anxiously awaited the latest read on the consumer price index. It fell more sharply after the report came in, showing a slightly larger-than-expected increase in inflation, despite the aggressive rate hikes the Federal Reserve has brought into play to combat rising prices.
Cryptocurrencies have been trading mostly sideways since the end of August, with bitcoin hovering within $19,000. That’s been a key level to watch for analysts, who say a break below it could lead to new lows below those hit in June, when bitcoin fell below $17,800 and ether fell under $900.
“Crypto markets are still overwhelmingly driven by macro. Bitcoin continues to trade within a tight range since June,” said Michael Rinko, venture associate at AscendEx. “However, today’s CPI print may threaten to break this range to the downside.”
