The U.S. Department of Labor Statistics released a worrying inflation reading report in June 2022. The CPI/CPI for June was reported to have recorded the highest increase in the U.S. in 40 years at 9.1%. This high inflation reading carries a strong indication that the Fed will tend to stay with their holdings for the time being.
In the minutes after the release of the CPI data, the BTC price fell about 4% while the ETH fell about 5%. The BTC price is currently trading at the $ 19,185.10 trading level. Traditional market indicators such as the NASDAQ, Dow Jones and the S&P 500 also suffered the same fate with large falls.
Last month’s CPI showed that inflation rose by 8.6% on a year -on -year basis, the largest such increase since 1981. The Fed has responded to rising inflation with policy tightening. The Central Bank finally decided to raise interest rates by 0.75 points, the largest increase since 1994.
The hawkish monetary policy of the Fed has resulted in a huge downturn for the entire crypto industry. Bitcoin prices show the worst quarterly development in a decade. On that basis, this latest reading of the CPI is more worrying and could bring disaster to the crypto market.
The output of the CPI received undivided market attention. Some observers also disagree on the direction of this inflation. Lark Davis who is one of the analysts believes that crypto investors can expect a better CPI in August as the latest decline in commodity prices will not be taken into account in this month’s data and that will lower the inflation data.
John, co -founder of The Rock Trading, provides a set of scenarios that could occur after the release of the CPI. According to him, if the CPI is less than 8.6%, the market can expect an increase in the market. If it soars higher then it will have an impact on the crypto market.
Michaël van de Poppe, founder of Eight Global, revealed that CPI readings will be decisive for Bitcoin. The market is currently watching at the $ 19.5K and $ 17K support levels.
