Bitcoin (BTC) sank below $30,000 on Wednesday, minutes after data showed U.S. inflation was higher than expected in April.
BTC dropped over 6% from intraday highs, and fell as low as $29,100. Other major cryptocurrencies also turned negative for the day after the reading. Ethereum is now down nearly 7%, while BINANCE Coin and Ripple are trading down 16% and 20%, respectively.
BTC’s sharp fall mirrors that seen in U.S. stock futures, which all turned negative after data showed the U.S. consumer price index (CPI) rose 8.3% in April, higher than expectations of 8.1%.
U.S. CPI data shows inflation nowhere near cooling
While the CPI data was lower than March’s reading of 8.5%, indicating that inflation is nearing its peak, it shows that prices are going to take much longer than initially thought to cool down.
The high inflation reading also means that the U.S. Federal Reserve and other central banks will consistently hike interest rates this year- a scenario that is decidedly negative for crypto markets.
Trending Stories
Maker Token (MKR) Up Nearly 50% As Rival Terra Crashes
Bitcoin News
Breaking: Terra's Do Kwon Plans To Sacrifice LUNA To Support UST Peg
Bitcoin News
Terra (LUNA) Hits Record Low Of $2.70, Can Do Kwon Fix This?
Bitcoin News
Crypto Markets Could Rally Today On U.S. Inflation Data, Here's Why
Bitcoin News
Bancor 3 Goes Live With Launch Partners Polygon, Synthetix, Yearn, Brave, Flexa, Nexus Mutual & 30+ DAOs
Bitcoin NewsThe U.S. CPI data has brought enormous amount of anxiety among traders as the number shows that inflation is no way close enough to cool off. Looking at the numbers, it seems that it is not only the Fed who will need to do a lot to control inflation but the Biden Administration also needs to do a lot more.
-Naeem Aslam, Chief Market Analyst at AvaTrade
BTC was already under pressure after the Fed raised interest rates last week. With this new development, the token is likely to sink to $28,000- a move that could trigger even more selling pressure.
Inflation has spiked this year following a prolonged period of loose monetary policy. Economic shocks from the Russia-Ukraine war have also exacerbated this issue.
BTC, crypto markets set for more losses
Fears of Fed tightening have dominated much of crypto trading this year, causing BTC’s over 50% drop from near record highs. Total crypto market capitalization has also slumped by over $800 billion this year, and is currently sitting around $1.4 trillion.
BTC had largely stuck to a holding pattern for most of Wednesday, in anticipation of the CPI data.
The crypto market is now likely headed for more pressure, as traders readjust for higher interest rates this year.
- Trending
- Price Analysis
- Breaking: Bitcoin (BTC) Slips To Near $28K In Minutes After U.S. Inflation
- Terra (LUNA) Hits Record Low Of $2.70, Can Do Kwon Fix This?
- JBAS – A New BAYC Inspired NFT Brand Is All Set For Its Launch Into Web3
- Bitcoin (BTC) Sees “Clear Evidence” Of Whale Buying Below $30K
- ApeCoin Price Tumbles 25% Despite This Bullish Signal, What’s Next?
- Here’s How the Attacker Possibly Made Over $800 Million In A Coordinated Attack on UST
- LUNA Tanks Another 57% Slipping Under $20, Do Kown to Announce UST Recovery Plan
- New Data Signals Institutional Players Are Offloading Bitcoin
- Coinbase Misses First Quarter Revenue, $COIN Shares Plummet
- Just-In: English Football Club Arsenal Enters NFT Craze
- Terra Price Prediction: LUNA Price Crashes 95% Trades Below $1.0; What Holds Next?
- Shiba Inu Price Analysis: SHIB Price Has Potential To Rise 33% From Current Levels; Are You Buying?
- Terra Price Analysis: LUNA Sellers Aim for $5 Despite Oversold Indicators
- MATIC Price Analysis: 25% Discount on MATIC Price Offer Dip Opportunity
- Avalanche Price Analysis: AVAX Price Jumps 19% In A Sharp Bounce Back; Is Correction Over?
- ETH Price Analysis: Is This An Opportunity To Retest $2800 Amid Bullish Technical Formation?
- FTT Price Analysis: Oversold RSI Boast FTT Price For $38 Target
- Bitcoin Price Analysis: BTC Price Rebounds From 10-month lows; Is $34,000 possible?
- Ripple Price Analysis: XRP Price Falls to 10-month lows; Is $0.40 Next?
- SHIB Price Analysis: SHIB Holders Lost A Monthly Support; Sell or Hold?
