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This week in markets: Bitcoin and ether edge lower while altcoins suffer heavy losses

This week in markets: Bitcoin and ether edge lower while altcoins suffer heavy losses

This week in markets: Bitcoin and ether edge lower while altcoins suffer heavy losses

  • Bitcoin traded at $19,135 today while Ether was at $1,282.
  • Altcoins suffered larger losses over the week, with ADA and SOL down around1% and 7.9%, respectively.
  • Inflation data came hotter than expected on Thursday, with core inflation hitting a 40-year high.

Bitcoin and Ether fell this week after Thursday’s swings following the latest inflation figures from the US. Bitcoin traded at $19,135 today, down 1.33% from last week, while Ether is down 2.15% over the same period to trade at $1,284, according to Coinbase data.

Meanwhile, altcoins suffered larger losses over the week, with ADA trading down over 13% to $0.36 and SOL down 7.89% to $29.95

U.S. inflation comes in hot

Inflation data came in better than expected on Thursday as core inflation touched a 40-year high. Inflation rose 0.4% monthly from August, to 8.2% yoy, according to the latest CPI data. Meanwhile, core inflation stood at 6% yoy – the biggest rise since 1982. Thursday’s data suggests the Fed is unlikely to slow its rate hikes anytime soon, with the market now holding a 97 percent chance of a fundamental 75-point hike priced in at the next meeting in November, according to CME’s FedWatch tool.

As fear continues to mount, markets don’t appear to be forecasting a 100 basis point hike by the Fed just yet, Youwei Yang, chief economist at Bit Mining, told The Block. “We’re not likely to see anything like a chaotic dump of stocks, but rather some highly leveraged portfolios reducing their risk positions to avoid more extreme volatility. The broader market has gradually fallen year-to-date, despite some small rallies, and many opponents have already called this a bottom,” Yang said.

A 75 basis point rate hike would bring the Fed’s target rate to 3.75-4%, from its current position of 3-3.25%, as above and according to data from the Bureau of Labor Statistics and the U.S. Federal Reserv. The target rate is expected to rise well above 4% by the end of the year.

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