Ether falls to around $2,420 as inflation fears push markets into fear

  • Ether fell about 4% to around $2,420 as oil topped $100 and Treasury yields neared 5%.
  • The CNN Money Fear & Greed Index fell to 31, while August U.S. producer prices rose 5.4% annually.
  • U.S. stocks closed lower and markets priced in about 70% odds of a 25-basis-point Fed rate increase.

Ether fell about 4% to around $2,420 as crude oil prices remained above $100 a barrel and the U.S. 10-year Treasury yield moved closer to 5%, raising concern that inflation could keep monetary policy restrictive. The CNN Money Fear & Greed Index declined to 31 from 38, remaining in the Fear zone, while U.S. stocks closed lower. The Dow Jones Industrial Average fell about 317 points to 52,064.10, the S&P 500 declined 0.58% to 7,591.70 and the Nasdaq Composite dropped 0.65% to 26,081.72. August U.S. producer prices rose 0.4% month over month and 5.4% year over year, above the 5.3% consensus after the annual rate was revised to 4.8% in July. Markets priced in roughly a 70% chance of a 25-basis-point Federal Reserve rate increase at the Sept. 15-16 meeting. Bitcoin traded near $76,901.67, down 1.57% over 24 hours, while total cryptocurrency market capitalization stood at about $2.71 trillion. Markets awaited Friday's U.S. CPI report, with headline inflation expected at 3.4% and core inflation at 2.4%, as well as the Federal Reserve's policy decision, the European Central Bank's 2.5% rate decision and a planned Senate procedural vote on a revised CLARITY Act amendment.

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