The U.S. inflation data came in higher than expected.
The price of ether fell by six percent to $1,216, according to coin metrics.
Early on Thursday, investors were waiting for the consumer price index to be released. The report showed a slightly larger-than- expected increase in inflation despite the aggressive rate hikes the Federal Reserve has brought into play to combat rising prices.
Since the end of August, theCryptocurrencies have been trading in a sideways fashion. Analysts say a break below it could lead to new lows similar to those seen in June, when ether fell under $900.
Macro is still the main driver of thecryptocurrencies markets. Michael Rinko is a venture associate at AscendEx. The range may be broken by today'sCPI print.
The market reaction is to be expected with high inflation suggesting to investors that the Fed will keep hiking rates.
He said that it makes sense that we would be down because of what we know about Powell's goal. "We firmly believe that markets have not yet reached a bottom, and that there is still another 10% to 15%leg down for digital assets, and even more for equities," he said.
The inflation report put pressure on the stock market. Future profits are less attractive due to rising rates.
The company was hit by about 9%. Blocks and Microstrategy were down. bitcoin mining stocks were lower by at least 4%, while silvergate bank lost 4%.
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