Since this is an important level, according to industry expert Ali Martinez, the top cryptocurrency must maintain a price above $19,200 to lessen panic selling. He emphasized:
“Roughly 2.5 million addresses bought nearly 1.5 million BTC at $19,200. The longer Bitcoin continues trading below $19,000, the higher the pressure these investors will feel to exit their long BTC positions to cut losses short. Consequently accelerating the downward pressure.”
The Consumer Price Index (CPI) for all urban consumers rose by 0.4% in September, according to the most recent inflation figures given by the United States Bureau of Labor Statistics (BLS), according to Blockchain.News.
A broad market response followed, which sent tremors through the cryptocurrency market and caused Bitcoin to plunge as low as $18,319.
Santiment, a cryptocurrency information service, said:
“Thursday has been an expectedly volatile day after inflation data was released. Bitcoin dropped to $18.3k, its lowest price level since September 21st. However, as traders were in the midst of stopping the bleeding, BTC & the SP500 rapidly recovered.” Despite the back-and-forth in the marketplace, Bitcoin's societal domination has decreased, but the top cryptocurrency was up by 3.38% in the previous day to touch $19,623 during trading stocks, as per CoinMarketCap.
BTC's societal influence has diminished as a result of certain traders aiming for quick gains. According to Santiment:
“Traders are chasing short-term pumps right now to salvage losses. Weak hands dropped out of crypto in 2022, & long-term traders are waiting for Bitcoin to begin receiving the spotlight again. When BTC social dominance is high, prices typically rise.”
In order to rein in spiraling inflation, the U.S. Federal System has raised interest rates, which has hurt the cryptocurrency industry. It is still unclear what action the Fed will undertake next month given that the most recent CPI numbers were higher than forecast.
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