The verdict is out. The U.S. Bureau of Labor Statistics released this month’s CPI numbers for Jun 2022, and the data suggests the continuing rise of inflation with an overall increase of 9.1% before seasonal adjustment. While the stock market hasn’t opened yet, experts suggest that the market will continue to slide amid the latest CPI data.
Since cryptocurrency markets trade 24/7, most digital assets saw bearish momentum in the past 24 hours, with Bitcoin (BTC) sliding 3.14%, Ethereum (ETH) down 4.63%, BNB losing 3.16%, XRP down 2.99%, Cardano (ADA) losing a whopping 4%, Solana (SOL) dropping 4.31%, and Dogecoin (DOGE) sliding by over 4.15%. The global cryptocurrency market is down 1.38%, currently valued at $871 billion at the time of writing.
While Bitcoin has been fighting for the $20k support level for several weeks, the latest inflation data hit the final nail in the coffin for short-term bulls as BTCUSD slipped well below the $20k territory, trading at $19.1k at the time of writing.
With altcoins amplifying Bitcoin’s price movements, it is no surprise that the top 10 cryptocurrencies following Bitcoin saw additional bearish momentum as Bitcoin price fell.
While the short-term sentiment for the markets remains bearish, the long-term potential for crypto is still highly bullish. Finder.com’s latest Bitcoin price prediction report suggests that the BTC price is expected to drop as low as $13,676 before ending the year on a high note of $25,473. Moreover, According to Finder.com, Bitcoin is set to surpass $100k by 2025 and trade over $214k by 2030.
Due to crypto’s fixed supply, most digital assets are inherently immune to inflation, which makes Bitcoin a great hedge against inflation. However, due to the high volatility and uncertainty in the crypto markets, digital assets aren’t quite as attractive to already fearful investors at this time.
The highly-awaited CPI numbers for June have been released, and things aren’t looking too good regarding curbing inflation. According to the latest CPI report from the U.S. Bureau of Labor Statistics:
“The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.3 percent in June on a seasonally adjusted basis after rising 1.0 percent in May, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 9.1 percent before seasonal adjustment.”
The most significant contributors to the increase in CPI numbers were the cost of shelter, used cars and trucks, medical care, motor vehicle insurance, and new vehicles. The two primary indexes to decline in June were costs for airline fares and lodging away from home.
The latest report suggests that inflation continues to rise, increasing even more in June than in May. There’s no doubt that the latest announcement will cause substantial bearish momentum for global stock markets, which will cause Bitcoin to face additional selling pressure as BTC has been following traditional market action over the past several months.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any stocks.
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