Bitcoin, Ethereum and other cryptocurrencies plummeted after the release of the latest consumer price index, which showed a 0.6% gain in January and an annual inflation rate of 7.5%, well above analysts’ expectations – this is since 19822 The biggest gain since the month.
In just over 30 minutes, Bitcoin fell by more than $1,600, while Ethereum fell by more than $150, plummeting 5% in the blink of an eye.
Other cryptocurrencies, including Solana, Cardano, and even Dogecoin and Shiba Inu, saw similar cliff-like plunges immediately — and continued their downward trend as of 9:15.m ET.
To put these numbers into perspective, Bitcoin’s market cap has dropped by more than $30 billion in just a few minutes.
The cryptocurrency crash is just one investment space bouncing back from inflation data. Market futures imply a sharp decline on Wall Street after forming a fairly solid open.
The rapid rise in inflation has not only spooked investors, but also hurt workers’ earnings growth last year. When people move between jobs, or when companies pay higher wages to keep workers. Seemingly decent raises, now either barely keeping up with the cost of living, or falling behind. Even gold futures took a hit, although those futures recovered fairly quickly.