Cryptocurrencies rebound after US inflation data

Cryptocurrency prices fell on Thursday, then rebounded after the release of the US inflation data. US inflation rose by 0.4% every month in September according to Thursday’s CPI data. Annual inflation reached 8.2%, dropping only slightly from last month’s 8.3%. An increasing number of Central Banks are tightening their monetary policy to combat soaring inflation. Successive rate hikes and tighter fiscal policies give rise to global recession concerns. 

The release of the CPI report brought market volatility, with the US dollar and gilds shooting upwards immediately after, and stocks plummeting. The tide turned soon afterward though, as many market participants were anticipating high inflation data and the results had largely been priced in. Stock markets and crypto markets, which had been slipping ahead of the US inflation data, rallied in late-day trading on Thursday 

Bitcoin plummeted below the $18,500 level support on Thursday and recovered shortly afterward, reaching $19,400. If BTC declines support can be found at $18,500 and further down at $17,600, while resistance may be encountered near $19,700. 

Ethereum price dropped below $1,200, then climbed just below $1,300. Ethereum's price remains below the $1,300 key level. If Ethereum's price declines, it may encounter support at $1,255 and further down at the psychological level of $1,000. If Ethereum's price increases, resistance may be encountered near $1,407.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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