Bitcoin, Ethereum, and other cryptocurrencies plunged following the release of the latest consumer price index, which showed an increase of 0.6% in January and an annual inflation rate of 7.5%, much higher than analysts were expecting—and the biggest gain since February 1982.
In just over 30 minutes, Bitcoin fell more than $1,600, while Ethereum dropped more than $150, a 5% plunge in the blink of an eye.
Other cryptocurrencies, including Solana, Cardano, and even Dogecoin and Shiba Inu, also saw immediate similar cliff-like plunges—and were continuing to trend downward as of 9:15 a.m. ET.
To put those numbers into perspective, Bitcoin saw its market capitalization fall by over $30 billion dollars in just minutes.
The crypto crash was just one investment space that recoiled from the inflation numbers. Market futures implied notable drops for Wall Street after what was shaping up to be a fairly solid open. And even gold futures took a beating, though those recovered fairly quickly.
The rapid rise in inflation is not only spooking investors, it’s impacting the earnings growth workers saw last year. What seemed like decent raises as people moved between jobs, or companies paid more to retain workers, are now either barely keeping up with the cost of living or falling behind it.
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