Bitcoin slumps 7%, reversing gains, after inflation report disappoints

Representations of cryptocurrency Bitcoin are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration

Dado Ruvic | Reuters

But August CPI data showed that inflation rose month over month even as gas prices slipped. The U.S. dollar jumped, and stocks sold off sharply as Wall Street anticipates more aggressive interest rate hikes from the Federal Reserve.

As rates surge, investors sought to shed risky assets like cryptocurrencies.