September 27, 2022

Bitcoin falls below $30,000 amid news of accelerating inflation in the US


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Annual inflation in the United States in May accelerated from 8.3% in April to 8.6%, the highest since December 1981, CNBC reports, citing the Ministry of Labor. Against this background, the price of bitcoin failed the level of $30,000.

At the time of writing, the first cryptocurrency is trading around $29,570. Over the past day, the asset has fallen in price by 1.9%, according to CoinGecko.

Following the flagship, Ethereum moved into the red zone. The fall in the last 24 hours was 3.7%. The current price of the cryptocurrency is $1722.

US stocks also reacted to the news with a fall: the S&P 500 fell 2.1%, the Nasdaq Composite fell 2.75%, and the Dow Jones Industrial Average fell 1.94%.

In March 2022, the US Federal Reserve System (FRS) raised its key rate by 25 bps for the first time since December 2018. n. – up to 0.25-0.5%. Then Bitcoin and the S&P 500 reacted with growth.

In May, the Fed raised the key rate range to 0.75-1% per annum, which surprised the markets. Against this background, the price of the first cryptocurrency at the moment overcame the level of $40,000.

Earlier, the co-founder of the BitMEX exchange, Arthur Hayes, called the fall of the first cryptocurrency to $ 30,000 by the end of the second quarter of 2022 due to the decline of the Nasdaq index likely.

Recall that Elon Musk announced the hodling of cryptocurrencies in anticipation of rising inflation.

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