Bitcoin and Other Cryptos Return to Red

August 10, 2022 World Blockchain

Bitcoin and Other Cryptos Return to Red. Bitcoin’s four-day surge was nice while it lasted.

The largest cryptocurrency by market capitalization was recently trading just above $23,200, down more than 2% over the past 24 hours and far removed from its temporary perch nearly $1,000 higher earlier Monday. Investors are apparently hunkered down waiting for the Wednesday morning release of July’s Consumer Price Index (CPI) in the U.S.

Analysts widely expect the CPI to drop to a still hefty 8.7% after hitting a four-decade high of 9.1% in June, suggesting that while inflation is slowing it remains problematic enough for the U.S. Federal Reserve to likely approve a third consecutive 75 basis point interest rate hike.

Ether, the second-largest crypto by market cap behind bitcoin, was recently changing hands at about $1,700, down approximately 4% from the previous day and well off a euphoric, two-month high about $1,800 early Monday. Other major cryptos were well-red on Tuesday with FILE and KSM recently tumbling more than 11% and 9%, respectively.

“You’ve seen quite a bit of stability in some of the price action, a bit of a rally off some of the recent lows,” Don Kaufman, co-founder of TheoTrade, told CoinDesk TV’s “All About Bitcoin” show.