TL;DR
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~$100B was wiped from the crypto market, earlier than (largely) being regained, after Feb’s CPI print got here in at 3.2% as an alternative of three.1% (significantly, that’s all it took).
Full Story
Welcome to Web3 Every day, the place we stare at crypto charts all day, so that you don’t need to!
That’s the excuse we make to ourselves no less than.
(In line with a sure therapist, it may truly be thought of “obsessive conduct” which is “placing an immense weight on {our relationships}.”)
…however what does Dr. Stevens know — she doesn’t even personal crypto.
Anyhow…
Whereas watching the charts yesterday, we witnessed a fast/violent dip, the place ~$100B was wiped from the crypto market in ~1hr, after the discharge of Feb’s Client Worth Index.
(Aka ‘CPI.’ Aka “how rather more costly has all the pieces turn into prior to now 12 months?”).
Right here’s a fast hearth breakdown of the way it all went down & why:
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Everybody anticipated CPI to have elevated 3.1% since this time final 12 months, nevertheless it got here in at 3.2%
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This stoked fears that rates of interest can be stored increased, for longer — placing stress on the financial system.
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The longer charges keep excessive, the much less likelihood we’ll have of creating a ‘comfortable’ touchdown (aka reducing inflation with out going right into a recession).
All of that performed out over 1-2 hours, wiping ~$100B from the crypto market, earlier than (largely) regaining all of it…
All from a .1% distinction in anticipated CPI.
Economics, amiright?