The market was wind in favor. Bitcoin (BTC) had marked new historical maximums last night and Ethher (ETH) was at the gates of a new price record. But … suddenly everything change.
New wholesale inflation data in the United States knocked off prices of digital assets abruptly.
The following graphic, provided by TrainingViewsample How BTC has behaved in the last 24 hours:
As Cryptonotics reported through their social networks, The US PPI (wholesale inflation) in July is triggered well above the expected: The annual was 3.3% (when it was estimated 2.5%) and the intermennsual was 0.9% (when it was estimated that it was 0.2%). This apparently is a consequence of the “tariff war” unleashed by Trump.
The PPI measures how much prices that companies pay for producing goods and services rise. If these costs increase, they usually move to the consumer, pressing general inflation … and the Fed that could decide not to cut interest rates in the near future, which would harm volatile assets such as actions, Bitcoin and cryptocurrencies.
It is worth clarifying that Bitcoin’s fall is relatively low if the long term is taken into account. At the time of this publication, the digital currency is still in an area close to the historical maximums (and in prices that had just 24 hours ago). We will have to wait for the next few hours and days to see what the evolution of this situation is.
