US August CPI higher than expected, Ethereum falls below 1600 on the eve of the merger! SBF: Apologizes for FTX crash

The U.S. announced on the 13th that the year-on-year Consumer Price Index (CPI) for August was 8.3%, higher than market expectations, shattering investors' hopes that inflation had peaked. In response, the U.S. stock market plummeted, with the Dow Jones closing down 1276 points, a 3.94% drop; the S&P fell more than 4.32%, breaking below the 4000-point mark, both marking the largest decline since June 2020. Bitcoin briefly fell below the $20,000 mark, while Ethereum is currently hovering below $1600.

Rate Hike Pace Slows Hope Shattered

In August, the year-on-year Consumer Price Index (CPI) rose by 8.3%, slightly lower than the previous 8.5%, but higher than the market's expected 8.1%. Additionally, the core CPI, which excludes food and energy costs, rose by 6.3% compared to the previous 5.9%, indicating that while oil prices are declining, other prices remain at high levels. According to the FedWatch tool by the CME Group, the probability of the Fed raising interest rates by 3 basis points in September has increased to 62%, the probability of a 4 basis point increase is now at 38%, and the previously optimistic expectation of a 2 basis point increase has dropped to 0%.

Market Reacts Strongly, FTX Temporarily Suspended

Due to the significant market reaction to the CPI data, Bitcoin briefly fell below the $20,000 mark, while Ethereum hovered below $1,600. A surge in trading activity caused the FTX exchange to temporarily become unavailable, preventing users from accessing their accounts to trade.

In response, FTX CEO and SBF apologized on Twitter for the disruption caused by the congestion of users, which led to abnormal automatic updates on the website. However, the issue was resolved within an hour.

Percentage Change in the Top 10 Cryptocurrencies by Market Cap