Urgent: Recording the highest inflation rate in the United States in 40 years and the Bitcoin currency negatively affected!
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Answer Urgent: Recording the highest inflation rate in the United States in 40 years and the Bitcoin currency negatively affected!
Minutes ago The US Bureau of Labor Statistics released the Consumer Price Index for June 2022.
The CPI was revealed at 9.1%, the highest inflation increase in the US in 40 years.
The CPI is a powerful measure of inflation that dictates the monetary policy of the Federal Reserve.
Within a few minutes of the CPI release, Bitcoin was down about 4% while the price of Ethereum was down about 3.5%.
Traditional market indices such as the NASDAQ, Dow Jones, and S&P 500 are also significantly lower.Read:Reasons that could keep the price of Ethereum above the $3000 level… get to know them
Last month’s CPI showed inflation rose 8.6% year over year, the largest increase since 1981.
The Federal Reserve responded to very high inflation with tight monetary policies.
Central banks raised interest rates by 0.75 points, the largest increase since 1994.
The tight monetary policies of the Federal Reserve led to a major recession in the entire cryptocurrency industry.
Bitcoin saw its worst financial quarter in a decade.
What the experts expect:
The release of the CPI gets full market attention.
Lark Davis believes that crypto investors can better anticipate the CPI in August given that the recent drop in commodity prices will not take into account this month’s data and will lead to lower inflation data.
John, co-founder of The Rock Trading, presented a set of scenarios that could happen after the release of the CPI.
According to him, if the CPI is below 8.6%, the market may expect a rise.
Anything higher than that will lead to a drop in cryptocurrency prices.Read:Uniswap begins testing its third version, V3, before its official launch
Therefore, a CPI above 9.0 will lead to a return to the bear market.
Eight Global founder Michael van de Poppe has revealed that the Consumer Price Index will be the straw that breaks the back of Bitcoin.
The conclusion of the analyzes is that, depending on the consumer price index, Bitcoin is expected to fall again.
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The crypto community awaits the release of US CPI data…Details here
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