Bitcoin price has extended its losses after the flagship currency dropped below $30,000 and this price action was seen for the first time since July 2021. The currency did recover a bit trying hard to hold on to $30,000.
However, the world’s first cryptocurrency tanked below $30,000 again just after the news spread that the inflation was much higher than expected.
At the moment, Bitcoin Price is trading at $29,081 with a decrease of 7.24% over the last 24hrs. This fall by Bitcoin follows the US stock futures, the one that crashed after the US CPI data showed that there is an increase of 8.3% in April.
No Sign Of Calmness In CPI Data
Though the CPI reports are lower than that of March which read 8.5% back in March, the data shows that the prices are not cooling down soon and are going to take much longer than expected.
The high inflation reading points out that there will be an increase in interest rates this year done by the US Federal Reserve and other central banks. This action will have a negative impact on the crypto market as well.
Last week’s interest rate hike by the Federal Reserve had already dragged the flagship currency under pressure and with this new development, the Bitcoin price is expected to plunge below $27,000 pushing for more selling pressure.
The surge in inflation is the result of the extended unsecured monetary policy and Russia-Ukraine was.
The Crypto Market to See More Losses
The indicated fear of interest rate hikes by the Federal Reserve was hovering over the crypto market since the start of the year resulting in a 50% drop from the Bitcoin’s all-time high price action.
Today the global cryptocurrency market capitalization has steeped by 12.91% over the last 24hrs trading at $1.24 trillion, decreasing more than $800 billion this year.
The current scenario will see more pressure on the crypto market as traders will have to adjust and move with increased interest rates this year.