- US inflation rate hit 9.1% in June 2022, the highest level since 1981, indicating that Fed officials might shift to a faster pace of interest rate hikes.
- Bitcoin price plummeted in response to the increase, dropping to $19,100 at the time of writing.
- Analysts predict that the Bitcoin price could hit yearly lows if the downtrend continues.
Bitcoin price reacted negatively to the US CPI data, wiping overnight gains. The inflation rate hit 9.1% in June 2022, the highest point in four decades. Analysts expect Bitcoin price to nosedive to yearly lows if bulls fail to takeover.
Bitcoin and stock futures tumbled in response to US CPI spike
After the US Consumer Price Index(CPI) data was released, Bitcoin price tumbled, and stock futures turned negative. Bitcoin holders were closely watching the data for clues on the outlook of central-bank policy and market-wide impact.
US inflation hit its highest point since 1981, climbing to 9.1% in June 2022. While Bitcoin and Ethereum wiped out their overnight gains, experts predict the assets will plunge to their yearly lows at the current rate of decline.
The CPI reading for June 2022 was higher than May’s annual rate of 8.6%. Fed officials have shifted to a faster pace of interest rate increases. This implies the inflation outlook has worsened, and the pace of interest rate spikes could slow down the economy.
Bitcoin price once again lost significant support at the $20,000 level, and analysts believe it is likely that the asset will retest its annual low.
Martin Froehler, the CEO of Morpher, argues that Bitcoin price will fall below $12,000 before beginning to climb to $40,000 by the end of 2022.
Bitcoin price fell through its support at $19,126; analysts believe the maximum pain scenario is a decline to $18,000 and lower.
BTC-USD price chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.