Today, the United States Bureau of Labor Statistics (BLS) published the latest inflation figures with the Consumer Price Index (CPI) for all urban consumers growing 0.4% in September.

According to the data, the CPI increased by 8.2% year-on-year and, surpassing the 8.3% registered in August, we can say that the efforts of the Federal Reserve to reduce this rampant inflation are not bearing much fruit.

High inflation numbers sent the market tumbling at press time with futures linked to the Dow Jones Industrial Average, S&P 500 Index and Nasdaq Composite all in the red. This broad market reaction sent chills down the spine of the digital currency ecosystem with Bitcoin comfortably falling below $19,000 support zone at as low as $18,319.82.

The initial shock and backlash is fading as investors choose not to worry about the impact of runaway inflation and what it could mean for the global financial ecosystem. In a surprising turn of events, Bitcoin has been showing an ambitious recovery, but this is not after $98 million has been amassed. Recorded as a liquidation since the CPI data was published.

What to expect in the future

Since inflation continues to be the enemy pointed out by the Federal Reserve and other Central Banks Around the world, monetary policymakers will always try to raise interest rates in an attempt to cushion the rise in the cost of goods.

That the inflation figures do not go down may push the Federal Open Market Committee (FOMC) to increase the interest rate beyond the 75 basis points it has announced four times this year.

The digital currency ecosystem may have downplayed the volatility as bulls realize that conditional interest rate hikes can lead to a recession which will ultimately be beneficial to currency proponents. cryptocurrencies. The good news is that Fed officials are not as aware of a recession as they are if inflation refuses to ease any time soon.

At the time of writing, Ethereal was trading at $18,319.82, down 2,985 in the last 24 hours and Binance Coin (BNB) was changing hands at $267.57 after a drop of 1.29%

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