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Key Reason Why Bitcoin (BTC), Shiba Inu (SHIB) and Cardano (ADA) Just Dropped to Intraday Lows

Thu, 10/13/2022 - 13:05
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Alex Dovbnya
Cryptocurrency prices fell sharply after most recent inflation report secured another massive rate hike
Key Reason Why Bitcoin (BTC), Shiba Inu (SHIB) and Cardano (ADA) Just Dropped to Intraday Lows
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The Bitcoin price dropped to a fresh intraday low of $18,183 at 12:30 p.m. UTC on the Bitstamp exchange. It reached the lowest level since Sept. 21.

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Leading altcoins are also getting hammered, failing to decouple from Bitcoin. Cardano (ADA) dropped to a new intraday low of $0.3490 on the Binance exchange. Meme coin Shiba Inu (SHIB) bottomed out at $0.00000924.

Cryptocurrencies fell sharply together with stock futures due to hotter-than-expected inflation data.

According to a new inflation report published by the Bureau of Labor Statistics, the consumer price index (CPI) grew 0.4% for the month, which is slightly above the 0.3% estimate. Inflation increased by 8.2% on a 12-month basis.

Another massive rate hike is almost a certainty

The higher-than-expected inflation figure means that the U.S. Federal Reserve still has much more work to do. Fed swaps now price in the peak policy rate of 4.85% in March 2023.

The market now fully expects the Fed to implement another 75-basis-point hike in November.

Steve Liesman, CNBC's senior economics reporter, argues that there is no reason for a Fed pivot.

The U.S. central bank aims to bring annual inflation down to the much-coveted 2% threshold.

"Nowhere to hide"

The U.S. dollar index, which measures the strength of the greenback against other major fiat currencies, surged to a new intraday high of 113.888. On Sept. 28, it reached a new multi-decade peak.

The 10-year Treasury yield is back above 4% after reaching its highest level in 15 years three weeks ago.

Notably, gold is also down more than 1% on the news. "All their charts look the same. Rare. Nowhere to hide," Eric Balchunas, senior ETF analyst for Bloomberg wrote.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at