Ethereum drops sharply as hotter‑than‑expected US CPI fuels risk‑off selling
The US September CPI came in above expectations, pushing headline inflation to 3.7% year‑over‑year and core CPI to 2.6% year‑over‑year. The data raised the probability of a Fed rate hike at the October meeting from 22% to 35%, spurring a broad risk‑off move across equities and crypto. Ethereum fell below $2,500, with prices reported around $2,430 and $2,350 in the hours after the release, and liquidations of leveraged long positions exceeded $65 million on one exchange and $106 million on Binance.
Why it matters
The sell‑off highlights heightened sensitivity of crypto assets to US inflation surprises and rising rate‑hike expectations, which can trigger large liquidations and depress prices for investors holding or trading ETH.
Key facts
- 1US headline CPI for September rose to 3.7% year‑over‑year, above the 3.6% forecast. fxstreet.com
- 2Core CPI for September increased to 2.6% year‑over‑year, above the 2.5% forecast. fxstreet.com
- 3Odds of a Fed rate hike at the October meeting rose from 22% to 35% according to the CME FedWatch Tool. fxstreet.com
- 4Ethereum liquidations totalled $65.42 million over a 24‑hour period, with longs accounting for 83% of the volume. fxstreet.com
- 5Binance recorded more than $106 million in ETH long position liquidations within a single hour after the CPI release. crypto.news
Open questions
- Ethereum price reported as $2,430 versus $2,350 after the CPI release.
- Reported price decline percentages differ: 3.1%, 3.2%, and roughly 6%.
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.