Bitcoin Slides As CPI Report Hints At Soaring Inflation – More Bearish Pressure Ahead?
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.
The price of Bitcoin decreased on Friday after U.S. CPI data revealed that inflation was not abating.
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Bitcoin Drops 1.6% Minutes After CPI Report
In contrast to forecasts, the U.S. CPI increased last month, as indicated by the data. BTC fell by 1.6% in the minutes following 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 have experienced a consolidation between $32,000 and $28,650 after the selloff in May pushed the BTC/USDT pair to a low of $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, the CPI, the most commonly followed measure of inflation, rose 8.6 percent year over year in May, up from 8.3 percent in April. The market anticipated a reading of 8 percent.
Source: New York Post
U.S. inflationary pressures have driven the Federal Reserve to boost interest rates more rapidly, suggesting additional losses for riskier assets.
In spite of negative macroeconomic market sentiment and systemic threats in the broader cryptocurrency market, Bitcoin has traded inside a narrow band of $28,000 to $31,000 over the previous 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 are also among the primary factors that have contributed to the negative market sentiment.
BTC total market cap at $556 billion on the weekend chart | Source: TradingView.com
BTC Sheds Nearly 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.
Despite recent losses, Bitcoin values are about 1 percent higher than they were a week ago, when they were trading for 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 from Currency.com, chart from TradingView.com