Bitcoin Reacts to Accelerating Inflation Rate – Loses 4% to Drop Below $44k -Breaking
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Bitcoin Reacts to Accelerating Inflation Rate – Loses 4% to Drop Below $44kAfter it was reported that U.S. inflation had hit an all-time high of 7% last January, the level dropped to below $40k. When the Fed responded, they announced that it would be raising interest rates for the very first time in over three years.
Inflation has surged from 7.0% – 7.5% less than a month later. The NASDAQ 100 recorded a 2.10% decline in the response.
Bitcoin dropped by over 4 percent in 24 hours. Bitcoin plummeted from $45,661.17 down to an intra-day low of $42,850 due to the reactionary price fall.
Bitcoin trading now at $43,482 as a result of marginal gains in the past few hours.
This is the 24 hour chart of Bitcoin’s price (BTC). Source: Tradingview
With Bitcoin’s first major support level standing at $42,578, its price will look to reclaim $44,208 before retesting the resistance level at $45,161. Should the world’s leading digital asset fall below the support level, it could see Bitcoin spiral down to as low as $41,625.
A Wider Crypto Market joins the Decline
Bitcoin’s price plunge has been felt throughout the cryptocurrency markets, dropping 5% to $3,097.4.
This is the 24 hour chart of Ethereum’s (ETH) price. Source: Tradingview
Altcoins like (DOT) have also suffered losses. They both traded at $0.8193, $20.5 and -9% respectively in the past 24 hours. (SOL), also trails by 8%, trades at $106.15 as of this writing.
The sudden fall in market value has caused the global market cap to drop by around 3%, from $2 trillion and above, down to $1.943 Trillion.
Chart of global cryptocurrency market capital for 24 hours. Source: Tradingview
Flipside
- In spite of Bitcoin’s pullback, the Bitcoin Fear & Greed Index has held strong at 50/100 – which signifies neutrality.
Why you should care
While this disappointing news ends Bitcoins winning streak, it demonstrates once again Bitcoin’s increasingly synced movements with traditional stocks.
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