Bitcoin Slides as CPI Report Points to Rising Inflation
As traders cling for the weekend, Bitcoin prices ushered in Friday’s session rather sluggishly.
During European trading hours, Bitcoin remained just around $30,000, showing signs of weakening ahead of the release of the US Consumer Price Index (CPI).
Bitcoin’s price fell Friday after US CPI data showed inflation was not declining.
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Bitcoin Drops 1.6% Minutes After CPI Report
Contrary to forecasts, the US CPI rose last month, as the data shows. BTC fell 1.6% in the minutes after its release.
BTC prices continue to trade below this week’s USD 30,500 resistance level and have moved closer to the USD 29,500 support level.
BTC traders have experienced consolidation between $32,000 and $28,650 after the May sell-off pushed the BTC/USDT pair to a low of $26,350. As a result, the BTC price has fluctuated within a range for about a month, indicating uncertainty among market participants.
CPI up 8.6% yoy last month
According to the US Department of Labor, the CPI, the most widely followed inflation measure, rose 8.6 percent year-on-year in May, from 8.3 percent in April. The market was expecting a position of 8 percent.
Source: New York Post
Inflationary pressures in the US have prompted the Federal Reserve to raise interest rates more quickly, pointing to additional losses for riskier assets.
Despite negative macroeconomic market sentiment and systemic threats in the broader cryptocurrency market, Bitcoin has traded within a narrow band of $28,000 to $31,000 over the past 30 days.
In addition to rising interest rates, inflation and the economic uncertainty that has plagued the entire financial system as a result of Russia’s unprovoked invasion of Ukraine, rising interest rates and inflation have been among the main factors contributing to negative market sentiment.
BTC total market cap at $556 billion on the weekend chart | Source: TradingView.com
BTC loses almost 65% of ATH
The world’s most sought-after cryptocurrency is down nearly 65 percent from its all-time high, which was reached in the fourth quarter of 2017.
Despite recent losses, Bitcoin values are up about 1 percent from a week ago when they traded for less than $29,000.
Meanwhile, Saturday’s Coingecko chart shows BTC trading at $29,271.63, down 1.5 percent over the past seven days.
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Featured image from Currency.com, chart of TradingView.com