Cardano suffers a market sell-off and the price plummets. The principal cause of the sell-off, according to Charles Hoskinson, the inventor of Cardano, is a high inflation report. The consumer price index data for August showed a higher-than-expected result for inflation.
Monthly adjustments in headline inflation were up 0.1%, while core inflation was up 0.6%. The annual rate of inflation was 8.3%.
Cardano suffered as the CPI numbers are out
Tuesday’s markets crashed as a result of major inflation data for August coming in higher than expected, undermining investor expectations for a more dovish Federal Reserve. Bitcoin (BTC) has increased 15% over the weekend in anticipation of a good report for August.
When the brand-new data was made public, it dropped by 4%. The Nasdaq Composite fell and the S&P 500 fell by a combined 2.4%.
The cryptocurrency market also fell, and at the time of publication, the bulk of altcoins was experiencing losses. The report is one of the final ones the Fed will review before its meeting on September 20-21, when the central bank is anticipated to vote to raise interest rates by 0.75 percentage points for the third straight meeting to control inflation.
The August strong inflation data may force the Fed to continue its aggressive rate rises longer than some investors had anticipated.
Charles Hoskinson, the developer of the Cardano cryptocurrency, commented on the low performance of cryptocurrencies in 2022 so far and asserted that markets are “disconnected” from reality.
Along with praising other cryptocurrency initiatives, Hoskinson added that many of them are “solid” even if their current pricing does not reflect that. The creator of Cardano also emphasized that macro issues were primarily responsible for the present market behavior.
In line with the price decline of other major cryptocurrencies during the past 24 hours, the price of the ADA coin has decreased by about 5.8%. As of press time, Cardano (ADA) was trading for $0.4734.