Bitcoin Dumps to Monthly Lows on Hot Inflation Data and Warsh Comments: Weekly Crypto Recap

Both CPI and PPI showed notable increases MoM and YoY. It was another eventful week in the financial markets, with all eyes turned to the inflation data from the CPI and PPI metrics released on Wednesday and Thursday. The readings were quite bearish for the crypto market, but more on that a bit later. The primary cryptocurrency was already feeling the mounting selling pressure after getting rejected at the key $87,000 resistance on a couple of occasions in the past few weeks. As reported in our previous Market Update from last Friday, BTC had tumbled from $86,600 to $80,400 within days. However, it had recovered some ground and traded at around $83,000 at the time of the post. The weekend was less eventful as usual, with BTC remaining sideways between $82,000 and $83,000. It tried a more profound recovery on Monday, but it was halted at $84,000. The subsequent leg down was immediate and painful, with bitcoin dumping to $81,000. However, the volatility continued in the opposite direction, and BTC quickly tapped $84,000 again. Then came the CPI reading for September, which was slightly higher than expected. The cryptocurrency reacted with an immediate leg down to $82,000 before the P...