Crypto Prices Fall After Inflation ‘Fakeout’: Here’s Why It Happened
The cryptocurrency market sent investors on a rollercoaster ride Thursday, with major assets like Bitcoin and Ethereum surging on promising U.S. inflation data only to reverse course sharply, erasing all gains and turning negative. This “fakeout” has left many traders asking why the market is falling after what initially appeared to be good news.
The catalyst for the volatility was a cooler-than-expected Consumer Price Index (CPI) report, which showed annual inflation at 2.4%, just below the 2.5% forecast. While this should have been a bullish signal, the optimism was short-lived as a combination of massive liquidations, technical failures, and macroeconomic jitters took control, sending prices tumbling.
