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CPI Reduces Interest Rates Announcement Comes to Rescue Crypto

Published 2022-11-11, 11:05 a/m
© Reuters.  CPI Reduces Interest Rates Announcement Comes to Rescue Crypto
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  • US labor statistics bureau reported an increase of 0.4% increase in October.
  • If the bulls keep pushing BTC it could hit $19,400, the region where it fluctuates.
  • Ethereum too shows a similar pattern to Bitcoin; bulls could help ETH hit Resistance Level One.

The U.S. Bureau of Labor Statistics reported that the Consumer Price Index for all urban consumers (CPI-U) rose by 0.4 percent in October on a seasonally adjusted basis, which is the same increase as in September. This mere 0.4 increase seems to give a little breathing space for the crypto market.

The crypto market came tumbling down with the leaked FTX balance sheets that revealed a void of $10 million. Followed by this revelation, the CEO of Binance sold all the FFT tokens to the free market which made the prices of the tokens tumble.

Following that Changpeng Zhao decided to acquire FTX exchange but finally withdrew from the acquisition citing many reasons. Due to the occurrence of this incident, the crypto industry took a big hit.

Notably, Bitcoin was moving sideways in the month of October fluctuating within a thin frame of prices. But with the crash of FTX, BTC which was trading at $21,300 on Monday fell down to $17,570 during the course of five days.

As of press time BTC is trading at $17,561. However, if the bulls could keep BTC pushing, it could take BTC to Resistance Level One which lies near $19, 400. Notably if not for the FTX crash, BTC would have been fluctuating in the normal region as mentioned above.

Bitcoin/Tether USD 1D Binance on TradingView

Ethereum which also was moving sideways took a deep fall with the FTX crash. Although the price of Ethereum fell from $1,642 to $1,100 in quick succession with the fall of FTX, there seems to be some momentum in Ethereum as the prices are trying to rise.

Additionally, Ethereum which is priced at $1,300 could reach Resistance Level One if the bulls keep pushing the price up. Viceversa, if the bears take control of the situation then Ethereum may land on Support Level One, as shown in the graph.

The post CPI Reduces Interest Rates Announcement Comes to Rescue Crypto appeared first on Coin Edition.

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