Similar to the free-falling equities globally, the repercussion of the hot US inflation data has also been felt on the digital token world. Bitcoin, the largest cryptocurrency at the time of writing this report, fell to its lowest price since December 2020 and traded at $23817, down over 13%. The pressure was alike in other altcoins barring the stable coins that saw a marginal upward move.
Bitcoin last year in November touched an all time high of around $69K and since then is moving in a tight range.
The sentiment is largely turning risk-off as the Fed is expected to get on to a more aggressive rate hike path. “The correlation between the equity markets and bitcoin continues to” gain strength, said AvaTrade analyst Naeem Aslam.
Bitcoin has logged twelfth straight weak of decline on the back of weak macros together with systemic risk surfacing within the industry. The fall seemed to bottomed out in May, nonetheless the free-fall continued, thanks to the US CPI data. According to price-charts, bitcoin had strong support at the $29,000 mark, but the fall below that level now means that the cryptocurrency could drop to its 2017 high of nearly $20,000.
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Story first published: Monday, June 13, 2022, 15:31 [IST]