From CryptoPotato · By Jordan Lyanchev
It was another eventful week in the financial markets, with all eyes turned to the inflation data from the CPI and PPI metrics released on Wednesday and Thursday. The readings were quite bearish for the crypto market, but more on that a bit later.
The primary cryptocurrency was already feeling the mounting selling pressure after getting rejected at the key $87,000 resistance on a couple of occasions in the past few weeks. As reported in our previous Market Update from last Friday, BTC had tumbled from $86,600 to $80,400 within days. However, it had recovered some ground and traded at around $83,000 at the time of the post.
The weekend was less eventful as usual, with BTC remaining sideways between $82,000 and $83,000. It tried a more profound recovery on Monday, but it was halted at $84,000. The subsequent leg down was immediate and painful, with bitcoin dumping to $81,000. However, the volatility continued in the opposite direction, and BTC quickly tapped $84,000 again.
Then came the CPI reading for September, which was slightly higher than expected. The cryptocurrency reacted with an immediate leg down to $82,000 before the PPI reading on Thursday, which showed the largest monthly increase in well over four years, brought it to its knees. The asset dipped below $80,000 for the first time in about a month.
Bitcoin tried to rebound immediately and neared $83,000 earlier today, but was stopped and pushed south to $81,500 as of press time. This translates into a 1% weekly decline, which is not as painful as some altcoins, such as XRP, SOL, HYPE, RAIN, and QNT. In contrast, NEAR has soared by almost 10% since last Friday, while BTW is up by 23%.
Market Data
Cryptocurrency Market Overview Weekly October 16. Source: QuantifyCrypto
Market Cap: $2.860T | 24H Vol: $84B | BTC Dominance: 57.6%
BTC: $81,430 (-1%) | ETH: $2,440 (-1%) | XRP: $1.32 (-3.4%)
This Week’s Crypto Headlines You Can’t Miss
Fed Chair Warsh’s Bangkok Speech: 4 Key Takeaways and What They Mean for Bitcoin. After the hot inflation readings, Fed Chair Kevin Warsh spoke at the IMF-World Bank Annual Meeting in Bangkok earlier today, and markets were anticipating a major hint about the central bank’s next hike move. However, he refused to signal whether the Fed will indeed hike rates in two weeks.
Why Did Bitcoin Suddenly Crash to $80K? Inflation was only a part of the broader story behind BTC’s major crash to $80,000 on Thursday. Other reasons include the massive collapse of the Nikkei and KOSPI, as well as substantial ETF outflows.
XRP Hits Wall Street: Here’s How Evernorth’s XRPN Performed on Debut. Evernorth’s merger with Armada Acquisition Corp II was successful, and the brainchild’s XRPN stock hit Wall Street on October 12, with its price ranging between $19 and $17 before closing below the lower boundary.