bitcoin price, reacted negatively to US CPI data and erased its overnight gains. The inflation rate reached its highest level in four decades with 9.1 percent in June 2022. Analysts expect Bitcoin price to drop to yearly lows if the bulls fail to strengthen again.
US Consumer Price Index (CPI) With the release of the data, there was a drop in Bitcoin price and stock futures turned negative as well. Bitcoin holders have been keeping a close eye on the data for clues about the outlook for central bank policy and the market-wide impact.
Inflation in the US reached its highest level since 1981, reaching a high of 9.1% in June 2022. Bitcoin and Ethereum While it quickly wiped out overnight gains, experts predict assets will drop to yearly lows at the current rate of decline.
June 2022 CPI data came in higher than the annual rate of 8.6% in May. Fed officials decided to switch to faster rate hikes. This is a critical detail, which means that the inflation outlook is worsening and the pace of rate hikes could slow the economy.
Bitcoin price once again lost an important support at the $20,000 level and analysts think it is likely to retest the asset’s yearly low. Morpher CEO Martin Froehler shared his prediction that the Bitcoin price will drop below $12,000 by the end of 2022 before climbing to $40,000. Different analysts, on the other hand, think that the $18,000 level is important in the short term.
You can follow the current price action here.
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