Crypto remained under pressure on October 15, with the market’s value excluding stablecoins falling below $2.4 trillion. Meanwhile, fresh U.S. producer-price data showed the biggest monthly increase since March 2022.
The new report gives traders another inflation concern after September’s consumer-price figures. For crypto investors, when price keeps increasing, it complicates hopes for lower interest rates.
Fresh inflation data gives investors little relief
Producers paid 1.3% more for their expenses in September after rising 0.5% in August, the U.S. Bureau of Labour Statistics reported this week, pushing prices 6.3% higher in the last 12 months.
The price of the goods also rose due to the effect of energy. Gasoline went up by 20.3%. The price of services rose 0.8%.
Even excluding food, energy, and trade services, prices increased 0.5% during the month, suggesting the pressure was not restricted to fuel.
This comes after Wednesday’s consumer-price report that showed annual inflation rising to 3.7%, up from 3.4% in August.
Why interest rates matter for crypto
After the Fed raised the benchmark rate to between 3.75% and 4% this September, the latest reading gave policymakers and decision-makers more things to consider before the Fed’s October meeting.
Higher rates increase the costs of borrowing and can make interest-paying investments more attractive. Investors may find themselves more reluctant to take risks in assets such as bitcoin.
Buyers face a test near $2.42 trillion
At the time of this writing, crypto’s aggregate combined value, less stable coins, was recorded near $2.39 trillion [down 1.94% for the daily session].
Roughly $47.14 billion in value has dropped in the market, but this is not equivalent to the amount of money withdrawn from the market.
The market slipped below its 50-day average near the $2.42 trillion area. Reclaiming that level would be its first improvement, but the recent downtrend may present challenges for the buyers.
If the weakness continues, attention will turn to the $2.30 trillion because the market previously traded around it.
Final Summary
- Producer prices rose 1.3% in September, adding to inflation concerns ahead of the Fed’s October meeting.
- Crypto’s value excluding stablecoins fell below $2.4 trillion, with $2.42 trillion the first recovery area to watch.
Be the first to comment