Fake Inflation Data Triggers BTC, ETH Price Dump

A fake news release claiming to disclose the Consumer Price Index for June 2022 caused a sharp downfall in crypto prices on Tuesday. The fake report detailed the CPI for June 2022 to rise by 1.7 percent to reach 10.2 percent. 

The fake report was claimed to be leaked, since the real CPI data will be released on the 13th of July, 2022 at 8:30 AM EST. The Consumer Price Index is monthly data that reveals the change in prices paid by US consumers. CPI, released by the US Bureau of Labor Statistics, is a strong measure of inflation. 

The Bureau of Labor Statistics took to Twitter to confirm that the report circulating on social media is indeed fake and that the real update will be released on the 13th of July at 8:30 AM EST. 

The Impact On Crypto

With the circulation of the fake CPI data, crypto prices experienced a significant fall. BTC fell down to as low as $19,302. It recovered slightly and is currently trading at $19,488.  ETH fell down by as much as 7% to reach $1,038. It is currently trading at $1,056. Other cryptocurrencies suffered significant downfall as well.

The CPI is a strong measure of inflation and is a strong indicator of the Federal Reserves’ monetary policies. If the CPI report reveals worsening inflation, the Fed responds to it by raising interest rates and quantitative tightening policies. 

Recently, the Fed raised the interest rates by 0.75 percent points in response to rising inflation. The move resulted in a sharp decline in crypto prices. Bitcoin suffered its financial quarter in a decade. 

Investors Wary Of CPI

Investors and traders across the crypto industry are very hesitant to be bullish on crypto until the CPI data is released. Lark Davis, a major crypto influencer and trader, believes that CPI can ruin crypto prices as the macros still dictate crypto. 

Meanwhile, the White House spokeswoman Jean-Pierre revealed that she believes the CPI for June will be highly elevated.

Nidhish is a technology enthusiast, whose aim is to find elegant technical solutions to solve some of society’s biggest issues. He is a firm believer of decentralization and wants to work on the mainstream adoption of Blockchain. He is also big into almost every popular sports and loves to converse on a wide variety of topics.

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