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Over $8 billion exits bitcoin just hours after US inflation hits 8.2%

Over  billion exits bitcoin just hours after US inflation hits 8.2%

Over $8 billion exits bitcoin just hours after US inflation hits 8.2%

Bitcoin (BTC) faces increased selling pressure after better-than-expected US inflation numbers for September. The outflow of capital into the asset has sparked speculation about the Federal Reserve’s next move to curb inflation. Notably, Bitcoin’s market cap at press time was $352.18 billion, a loss of $8.48 billion in two hours.

Prior to the release of inflation numbers, the flagship cryptocurrency had a market cap of approximately $360.66 billion, according to data from Coin Market Cap. The latest figures in particular are likely to lead to higher interest rates. The Fed’s tightening policy has dampened demand for risk-sensitive assets like Bitcoin. The current environment was also bleak for equities.

The latest data shows that the consumer price index for September rose 8.2%  yoy compared to the 8.1% expected. At the same time, core CPI also hit 6.6% yoy, marking its highest level since 1982.

Bitcoin’s price corrects further 

Additionally, Bitcoin’s price has continued to fall, with the asset trading at $18,300 at press time, posting losses of nearly 4% over the past 24 hours. Amid the ongoing correction, crypto analyst Tom Dunleavy warned that Bitcoin is likely to correct further, prompted by factors such as Bitcoin mining activity. Uncertainty about the Fed’s next move comes despite part of the market recently claiming that Bitcoin bottomed after consolidating around the $19,000 and $20,000 levels.

Additionally, market conditions could see a further rise in the Trigger bitcoin volatility. As reported by Fin bold, Bitcoin’s volatility has dropped to historic levels and is trading more stable than stocks.

However, concerns have been raised about falling volatility given pent-up trading volumes.

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