Bitcoin reaches a high all time before diving 5% in the middle of the fears of inflation

Ethereum, the second largest cryptocurrency in the world by market capitalization, also oscillates near the heights of all time, but is down 4% in the last 24 hours to around $ 4,500, by Binance. However, the price of the token climbed in the past month to increase by almost 50%.

The total market capitalization of all cryptocurrencies dropped by almost 4% during the last day at around 4.07 billions of dollars, according to Coingecko, and the S&P 500 has been slightly down on Thursday since the end of the markets.

Bitcoin Wednesday followed an episode of optimism about the prospect of prices in September of the Federal Reserve. On Tuesday, the Bureau of Labor Statistics reported only a moderate increase in inflation in July by 2.7%. Analysts quickly predicted that the decreases in September prices – which would probably encourage investors to withdraw money from American treasury bills and put them in more risky bets like Bitcoin – were almost a fact, according to the Fedwatch tool of the CME group.

“The quasi-certainty of American interest rate reductions raises appetite and pressure from the dollar,” said Axel Rudolph, a main technical analyst at IG, a financial company based in the United Kingdom.

But, Thursday morning, the BLS reported a worrying price increase in July 0.9% in goods made by American producers. It has been the biggest increase since June 2022, and the cryptography market plunged with the news.

“The decline in bitcoin after reaching a top of all time looks like a classic profit fight, amplified by macro-trempes,” said Thomas Perfumo, a world economist for Kraken, one of the greatest exchanges of cryptography in the United States

Kyle Chasse, founder and president of the Capital-Risk Capital Society MV Global, echoed in Perfumo. “It scares people,” he said about the most recent BLS report.

Despite the decline, the cryptography market is always at peaks at all times. The total market capitalization continues to oscillate more than $ 4 billions, a brand that it first crossed in July in the middle of a boom on the stock market and friendly policies of President Donald Trump.