Bitcoin (BTC) value plummeted below $20,000 as a result of news that US inflation has reached its greatest level in more than 40 years.
The Consumer Price Index for June 2022 was 9.1 percent, up from 8.6 percent in May 2022, according to the latest data from the US Bureau of Labor Statistics.
According to the most recent data, inflation is escalating rapidly in the United States and throughout the globe.
As of 13:06 GMT on Thursday, Bitcoin price has fallen by nearly 3%, with the one-hour candle reaching $19,255, according to statistics from CoinGecko. Ethereum (ETH) isn’t exempt from the trend, as its price fell to $1033 at 13:06 GMT, down almost 4%.
According to Coinglass statistics, Bitcoin’s total liquidations in the previous 24 hours surpassed $85 million, with over $30 million of that occurring in the last four hours.
The surge in inflation was already being anticipated by some investors, who had initiated short bets against the cryptocurrency.
The NASDAQ, a more traditional market gauge, performed much worse. The market’s current valuation, which is shown as 11,264 on the company’s official website, has decreased by almost 1%. This morning, the market had reached a high of 11,483.
Analysts expect the Federal Reserve to increase interest rates by another 75 basis points in September, based on fresh evidence that inflation in the United States has not reduced.
According to Jerome Powell, the head of the Federal Reserve, “additional shocks might be in store” if inflation slows down.
“A string of lowering monthly inflation readings” is required, according to the bank’s chairman.
“Unacceptably high” inflation estimates were slammed by US President Joe Biden, who said they didn’t take into account recent gains.
According to Changpeng Zhao, CEO of Binance, the “9.1 percent inflation rate is miraculous.”
Because 80 percent of the USD in circulation has been created in the previous two years, CZ expects a 500 percent inflation rate.
It is just a matter of time until the whole world realizes that 1 BTC Means 1 BTC, said CEO of MicroStrategy, Michael Saylor. “