Cryptocurrency prices drop as US inflation reaches 2.4%, investors opt for stability

From Investing.com
October 10, 2024 10:45 AM:

US inflation data released today showed a slight decrease to 2.4% year-over-year, still higher than expected. Cryptocurrency prices, including Bitcoin, dropped on the news. Speculation grows that the Federal Reserve may pause rate cuts, increasing the dollar’s strength. The CME’s FedWatch tool now predicts an 85% chance of a 25 basis point rate cut in November.

Investors in Bitcoin ETFs saw quiet trading despite $30.5 million outflows. U.S.-listed BTC ETFs had their highest inflows since September 27, with Fidelity Wise Origin Bitcoin Fund leading. Ether ETFs saw no activity, with net outflows of $562 million since their launch in July. U.S. economic data to be released Thursday includes jobless claims and retail sales figures.

Cryptocurrency prices react strongly to U.S. economic data, with investors favoring stability over riskier assets. Bitcoin ETFs attracted $19 billion in net inflows since January, while Ether ETFs saw no activity for the third time since launch. The market is awaiting additional U.S. economic reports on jobless claims, real earnings, and retail sales.

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