After the August consumer price index report came in higher than anticipated on Tuesday, stocks also declined, and bitcoin plummeted along with them.
According to Coin Metrics, the price of the cryptocurrency dropped 9.66% on Tuesday, reaching $20,249.8 per coin at 4:00 p.m. ET. Since June 18, it was the worst day for bitcoin.
Prior profits have been reversed by the dropping price. According to Coin Metrics, Bitcoin rose to a one-month high of $22,764.49 on Tuesday morning before dropping.
The U.S. dollar weakened in anticipation of Tuesday's inflation report, which was anticipated to reveal that inflation had slowed down, which helped fuel the rally that sent the digital currency back above the crucial psychological $20,000 threshold last week. The price of Ethereum was also boosted by a highly anticipated network update.
Full report: https://www.cnbc.com/2022/09/13/bitcoin-slumps-7percent-reversing-gains-after-inflation-report-disappoints.html