Bitcoin Clings to $19K as Traders Place Bets Ahead of Key Inflation Data

BTC stabilized around $19,100 as stocks gained ahead of the release of the Consumer Price Index (CPI) inflation data.

AccessTimeIconOct 12, 2022 at 5:46 p.m. UTC
Updated Oct 12, 2022 at 6:59 p.m. UTC

Bitcoin held steady around $19,100, moving higher after two consecutive daily losses as stock traders bid up traditional markets ahead of Thursday’s expected release of key inflation data in the Consumer Price Index (CPI) report.

The CoinDesk Market Index rose 0.59% over the past 24 hours. At press time, bitcoin (BTC), the largest cryptocurrency by market capitalization, slipped 0.12% after coming back from the low of $18,971 earlier in the day. Ether (ETH) was up 0.27%, trading below $1,300.

Investors remained in a wait-and-see mode following Wednesday's higher-than-expected U.S. producer price index (PPI) data, a measure of the price of goods sold by manufacturers. Despite the U.S. Federal Reserve's fight against inflation, wholesale prices rose 0.4% for September, compared with the Dow Jones estimate for a 0.2% increase.

Global macro sentiment has driven correlations across assets “back to extremes,” according to QCP Capital’s note. BTC’s correlation with equities and gold is “at all-time highs.” By contrast, the U.S. dollar’s correlation with bitcoin – historically an inverse relationship – is “at all-time lows.”

Stefan Rust, founder of economic data aggregator Truflation, said the markets would probably revert to a downward trend as the Federal Reserve continues its strategy of tightening monetary policy.

“In the past two years, crypto has been highly correlated to stocks and dependent on global fiat liquidity, so we can expect further drops or at least increased daily volatility around the release of the CPI figures tomorrow,” he told CoinDesk via an email.

Among altcoins, Solana’s native token SOL was down 2% after Solana-based decentralized finance (DeFi) platform Mango was hit by a $100 million exploit late Tuesday evening. As of press time, Mango's MNGO token was down 33%, according to CoinMarketCap.


DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.