The cryptocurrency market has suddenly dropped today. After the US inflation data released on September 13, Bitcoin and Ethereum lost more than 5%. One of the experts explaining the reason for the decline was Cardano founder Charles Hoskinson.
Cardano founder talks about ‘main reason’ for market sell-off
Cardano founder Charles Hoskinson cites the primary reason for the sales, while citing a CNBC report. Hoskinson actually put forward a “high inflation report” of the USA. A higher-than-expected reading for inflation was reported in the August consumer price index data. While core inflation increased by 0.1% on a monthly basis, monthly changes in core inflation increased by 0.6%. Annual inflation was 8.3 percent.
After the inflation data beat expectations, US bond yields were on the rise, while the Nasdaq Exchange lost around 2 percent in futures. The cryptocurrency market has been on the decline after being quiet for a while.
Sales started after inflation data
Markets fell on Tuesday after a critical August inflation report came in stronger than expected. That undermined investors’ hopes for a less aggressive Federal Reserve. In anticipation of a positive report for August, Bitcoin (BTC) gained 15% over the weekend. However, it fell 4% when the new data became public. The S&P 500 is down 2.4% and the Nasdaq Composite is down more than 3%.
The crypto market has also dropped, with most altcoins trading in the red over 5% at the time of writing. The report is one of the last the Fed will see ahead of its September 20-21 meeting, when the central bank is expected to decide on a third consecutive 0.75 percentage point rate hike to curb inflation. According to experts, the report of high inflation in August may cause the Fed to continue its aggressive increases for longer than some investors expect.
Macro factors dominate
cryptocoin.comAs you follow, Cardano founder Charles Hoskinson talked about the poor performance of cryptocurrencies so far in 2022 and claimed that markets are “disconnected” from reality.
Still, despite the sharp market correction, Hoskinson maintains an optimistic tone. The founder says Cardano has “never been this strong” and that its best days are ahead.
Hoskinson also praised other projects in the cryptocurrency market. He added that although current prices do not reflect this, many are “solid”. The Cardano founder also underlined that the current market movement is mainly driven by macro factors. The price of the ADA token, along with other major cryptocurrencies, has dropped nearly 5% in the past 24 hours. Cardano (ADA) is currently trading at $0.4751.
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