Crypto Markets and Equities Pull Back Following Stronger-Than-Expected US Inflation Data
Crypto assets and equities retreated following higher-than-expected US consumer price data, triggering liquidations and market volatility.
Bitwise Chief Investment Officer Matt Hougan stated in a memo that Bitcoin is poised to move higher across various macroeconomic scenarios, including potential artificial intelligence booms, downturns, or Federal Reserve policy shifts. Hougan noted that an AI bubble burst would likely result in government intervention followed by a rally, pointing to Bitcoin's recovery following its steep fall during the early 2020 market panic.
The broader financial landscape showed signs of caution leading up to the inflation release. Trading volume in the SPDR S&P 500 ETF Trust dropped to 22.6 million shares on Friday, marking its lowest regular session level since 2005, according to The Kobeissi Letter. The S&P 500 subsequently registered its steepest single-day decline since July 29 after the September consumer price index report was published.
Crypto markets experienced rapid pressure after the data release, with Ether recording over $106 million in long liquidations on Binance within a single hour. Concurrently, XRP declined 5.9% over 24 hours to trade near $1.30, with market observers tracking the $1.20 level as a potential support zone amid the broader market correction.
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