Crypto market tumbles, majority of altcoins recording losses at press time
Charles Hoskinson, the Cardano founder, citing a CNBC piece, cited a high inflation report as the primary reason for the sell-off. The August Consumer Price Index data was reported to have a higher-than-expected reading for inflation. Month-on-month headline inflation rose 0.1%, while the monthly change in core inflation rose 0.6%. Inflation was 8.3% on a year-on-year basis.
The markets plunged on Tuesday after a crucial August inflation report came in stronger than anticipated, which undermined investor hopes for a less aggressive Federal Reserve. In anticipation of a favorable report for August, Bitcoin (BTC) had gained 15% over the weekend. However, once the fresh data was made public, it fell by 4%. The S&P 500 dropped 2.4%, and the Nasdaq Composite sank more than 3%.
The crypto market also fell, and most of the altcoins were recording losses at press time. The report is one of the last that the Fed will see ahead of its September 20-21 meeting, where the central bank is expected to decide on a third consecutive 0.75 percent interest rate hike to tame inflation. The Fed could continue in its aggressive hikes longer than some investors expected as a result of higher inflation reports from August.
Macro factors prevail
As reported by U.Today, Cardano creator Charles Hoskinson spoke on the underperformance of cryptocurrencies in 2022 so far, claiming that markets are “disconnected” from reality.
Hoskinson also praised other projects within the cryptocurrency industry, saying that many of them are “solid” even though current prices do not reflect this. The Cardano founder also highlighted the fact that the current market action is largely driven by macro factors.
The price of the ADA token has plunged by nearly 8% over the last 24 hours in tandem with other major cryptocurrencies. Cardano (ADA) was trading at $0.47 at press time.
