This week, Bitcoin recorded its biggest decline in three months, dropping almost 10%, weeks after the release of a report from the US Federal Reserve (Fed) on the consumer price index.
Bitcoin continues to fall. Tuesday, September 13, he recorded a 9.35% loss to reach the $20,304.43. At the same time, new data from the US Department of Labor showed a 8.3% increase consumer prices over the past 12 months.
This is the second month in a row that Bitcoin has lost value. Nevertheless, the figures remain higher than economists’ expectations. After briefly passing below $20,000 on August 27, the price of Bitcoin continued to climb. However, it has lost two thirds of its value since November 2021, when it reached the $67,037.
This is the biggest drop since June, when Bitcoin fell from $28,636 June 11 at $20,556 June 16. The decline continued until it reached $19,327 1er July. Economists have warned that a looming recession could erase the progress made by cryptocurrencies during the covid-19 pandemic, when stocks soared.
The Dogecoin, prized by Elon Muskalso have fell 5.85% Tuesday, trading at $0.06, while Ether has fell 7.96% to reach 1586.92 dollars. As for Coinbase, it has fell 8.61%trading at $75.44.
Although low interest rates and covid-19-related government aid have fueled Bitcoin’s rise in 2020, two rounds of Fed interest rate hikes this summer have made investing riskier. Last month, the Chairman of the Fed, Jerome Powell, warned that runaway inflation could “take a while” to subside and that the Fed should act “aggressively.” In the week ending June 17, bitcoin outflows hit $423 million, after falling to an 18-month low, according to cryptocurrency firm CoinShares.
On the heels of the release of the Fed’s Consumer Price Index report, stocks fell throughout Tuesday. The Dow Jones lost 3.87% ($31,163.99) and the tech-heavy Nasdaq lost 3.76% ($61.70) on Tuesday afternoon as food prices , health care and housing rose, despite lower gas prices.
Article translated from Forbes US – Author: Brian Bushard
<<< Also Read: Bitcoin Drops Below $20,000 As Cryptocurrency Crisis Continues >>>