Bitcoin Is Declining Due To Rising Inflation In The USAdmin
At the auction on July 13, bitcoin consolidated below the critical $19,000 and continues under severe pressure. Such dynamics are connected with the economic data received from the USA. It became known that the consumer price index reached an absolute maximum of around 9.1%.
After the publication of fundamental statistics, the flagship cryptocurrency lost more than 5% in value. Many experts agree that the rapid inflationary growth will urgently force the Federal system to tighten its monetary policy. It is noteworthy that the CPI was predicted to rise to 8.8%, but the actual data exceeded all expectations.
Some analysts are already saying that in such conditions, the Fed may take a radical step – raising the refinancing rate by 100 basis points. For short-term investors and speculators, this can be a natural disaster, as available liquidity in the market will inevitably shrink.
“Bitcoin, which felt relatively stable within the framework of low-interest rates, began to lose ground since the end of last year, taking into account the tightening of the Federal Reserve’s monetary policy, having lost the status of a protective asset rapidly. It is also worth considering that quite strong data on employment in the US was published last week.”
In such conditions, the Fed can avoid a recession in the economy, despite the potential increase in the refinancing rate. Most experts agreed that the current reaction of bitcoin to inflation data would provoke another wave of massive sales shortly.
The Crypto.ru editors reported that Bitcoin fell below the significant $20,000 extreme from July 11 to July 12, 2022. At that time, the capitalization of the cryptocurrency industry decreased by 3.6%, near the level of $915 billion.
Leave a Reply