Crypto remained under pressure on October 15 , with the market’s value excluding stablecoins falling below $2.4 trillion . Meanwhile, fresh U.S. producer-price data showed the biggest monthly increase since March 2022.
The new report gives traders another inflation concern after September’s consumer-price figures. For crypto investors, when price keeps increasing, it complicates hopes for lower interest rates.
Producers paid 1.3% more for their expenses in September after rising 0.5% in August, the U.S. Bureau of Labour Statistics reported this week, pushing prices 6.3% higher in the last 12 months.
The price of the goods also rose due to the effect of energy. Gasoline went up by 20.3% . The price of services rose 0.8% .
Even excluding food, energy, and trade services, prices increased 0.5% during the month, suggesting the pressure was not restricted to fuel.
This comes after Wednesday’s consumer-price repor t that showed annual inflation rising to 3.7% , up from 3.4% in August.
After the Fed raised the benchmark rate to between 3.75% and 4% this September, the latest reading gave policymakers and decision-makers more things to consider before the Fed’s October meeting.
Higher rates increase the costs of borrowing and can make interest-paying investments more attractive. Investors may find themselves more reluctant to take risks in assets such as bitcoin.
At the time of this writing, crypto’s aggregate combined value, less stable coins, was recorded near $2.39 trillion [down 1.94% for the daily session].
Roughly $47.14 billion in value has dropped in the market, but this is not equivalent to the amount of money withdrawn from the market.
The market slipped below its 50-day average near the $2.42 trillion area. Reclaiming that level would be its first improvement, but the recent downtrend may present challenges for the buyers.
If the weakness continues, attention will turn to the $2.30 trillion because the market previously traded around it.