Crypto prices plunge after the shock inflation report

The largest cryptocurrency in the world dived strongly on Thursday after the latest inflation data showed that wholesale prices increased much faster than expected. The price of Bitcoin is down 3.8% compared to the day ($ 117,900), Ethereum is down 4% ($ 4,535) and Ripple is down 6.1% ($ 3.07) according to CoinmarketCap.

Cryptography prices react to the price of producers’ prices (PPI) for July, which measures the average price variation in manufacturers and American service providers. It increased by 0.9%, according to the Bureau of Labor Statistics, the highest monthly increase since March 2022, according to the Wall Street Journal.

This 0.9% increase was three times higher than planned, and it is a bad sign for worried Americans of high prices, because PPI figures tend to be a signal of what will happen for the average consumer. It also means that the federal reserve is much less likely to reduce short -term interest rates, which Wall Street was expecting quite universally to happen in September. But no more now.

Experts were surprised

The anchor of CNBC, Rick Santelli, a long -standing supporter of President Donald Trump’s economic policies, was shocked in real time while providing the news Thursday morning. “The title number is very large,” proclaimed Santelli. “Oh my god. Up 9/10th of percent. Up 9/10th.”

https://www.youtube.com/watch?v=1FEZZC2FCWI

President Trump falsely said that inflation was no longer a problem, but prices have not increased as much or as quickly as most economists seemed to predict after the so-called “Liberation Day” of Trump on April 2. But it seems quite possible that America is not out of the prices at stake, when it comes to inflation induced by the price, given the surprising number for the prices at stake published Thursday.

The consumer price index for July, published Tuesday, increased by 2.7% on an annual basis, slightly less than 2.8% expected. But so -called basic inflation, which excludes the prices of foods and sadly volatile energy, increased by 3.1% over the year, the highest in five months. Half of the Americans say that the price of the grocery store is a “major stress” of their lives, according to the recent polls in the Associated Press-Noc Center for Public Affairs Research.

Political interference

Unemployment complaints for August 9 arrived at 224,000, just below the expected number of 230,000. But other unemployment numbers in recent months have been considerably revised after enough time. And these wild oscillations are the kind of thing you see just before a recession. These revisions have become a problem with the president.

On August 1, Trump pulled the head of the labor statistics office, Erika Mcentarfer because he did not like revisions. The president accused Mcentarfer of using “fake” figures in one of the most transparent fascist movements that Trump tried. During normal moments, this is called the Messenger shoot.

Trump, who made himself even richer thanks to the crypto, tried to feed on the president of the strong hand, Jerome Powell, to reduce interest rates, but has so far failed. And if inflation increases, there is no reason to reduce rates, as this would theoretically only make inflation worse.

Not just Bitcoin

The DOW plunged on inflation news but recovered by the closure market on Thursday. The S&P 500 had also dropped considerably after the release of the PPI numbers Thursday morning and closed two higher points after reaching a record on Wednesday, which technically puts it to another record, even if it is something that CNBC characterized as a “break”.

Other cryptocurrencies have also fallen, although sometimes more modestly than great players like Bitcoin and Ethereum. The BNB is down 0.7%, Solana is down 4%, Tron is down 0.6%and Dogecoin is down 8.1%. Cardano, the 8th largest cryptocurrency in the world, increased by 2.3%.