Bitcoin Slides As CPI Report Hints At Soaring Inflation

As traders buckle down for the weekend, Bitcoin prices ushered in Friday’s session rather sluggishly.

During European trading hours, Bitcoin stayed slightly around $30,000, displaying signs of weakening ahead of the U.S. consumer price index (CPI) release.

After U.S. CPI data showed that inflation wasn’t slowing, Bitcoin prices fell Friday.

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Bitcoin falls 1.6% in minutes following the CPI report

Contrary to predictions, data shows that the U.S. CPI rose last month. The BTC declined by 1.6% within minutes of the release.

BTC prices continue to trade below this week’s resistance level of $30,500 and have inched closer to the $29,500 support level.

BTC traders experienced consolidation of $32,000 to $28,650 following the May selloff that pushed BTC/USDT pairs down to $26,350. As a result, the BTC price has oscillated within a range for about a month, signaling market participants’ uncertainty.

CPI climbs 8.6% YoY last month

According to the U.S. Department of Labor (US Department of Labor), the CPI, which is the most popular measure of inflation, increased 8.6 percentage year-over-year in May from 8.3 percent in April. According to the market, the CPI would rise by 8.6 percent year over year.

Source: New York Post

The Federal Reserve has increased interest rates rapidly in response to rising inflationary pressures. This could lead to additional losses for assets that are more volatile.

Bitcoin trades within the narrow range of $28,000-31,000 in spite of the negative market sentiment and the systemic threats in cryptocurrency markets.

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 are also among the primary factors that have contributed to the negative market sentiment.

 Source: TradingView.com| Source: TradingView.com

BTC Drops Close to 65% from ATH

The world’s most sought-after crypto is down almost 65 percent from its all-time high, which was reached in the fourth quarter of 2017.

Bitcoin’s value is now 1 percent higher today than it was a week ago (when they traded at less than $29,000).

Meanwhile, Saturday’s Coingecko graphic depicts BTC trading at $29,271.63, down 1.5 percent in the last seven days.

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Featured image by Currency.com. Chart by TradingView.com

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