Bitcoin Prices Slide Below $30,000. Inflation Data Bring More Pain to Cryptos

Jun 12, 2022

Bitcoin Prices Slide Below $30,000. Inflation Data Bring More Pain to Cryptos

Bitcoin and other altcoins fell in tandem with stocks after equities plummeted on Thursday and were expected to do so again on Friday as U.S. inflation data cast a pall over investor sentiment.

Bitcoin's value has plummeted 2% in the last day to approximately $29,600, breaking the crucial $30,000 level. Moreover, it has not persistently traded below that psychological barrier since the end of May.

The S&P 500 Index sank 2.4 percent on Thursday, while the Nasdaq dropped almost 3 percent. Cryptocurrencies should, in principle, trade autonomously of traditional financial markets, but they have mostly proven to be connected with other assets, such as stocks or commodities.

In previous weeks, one of the main concerns for investors both in the crypto and financial markets has been the prospect of an economic downturn against the backdrop of rising prices. Central banks, such as the FED, have pushed vigorously to manage inflation with hawkish monetary policy, including interest-rate hikes. However, there's a risk that too much policy hardening would trigger a recession.

A slowdown in the economy would be anticipated to hamper investors' tolerance for risk, making turbulent virtual currencies unfavorable.

With the release of the May consumer price index (CPI) statistics on Friday, inflation fears resurfaced. Last month's CPI increased by 8.6%, exceeding estimates of a rise of 8.2%.

This unexpected inflation report suggests that increasing costs haven't reached their peak, putting further pressure on the Federal Reserve to operate even more forcefully. The data resulted in a dramatic drop in U.S. stock-index futures, as well as a sudden sell-off in Bitcoin, with the world's biggest cryptocurrency losing about hundreds of dollars in a matter of minutes.

Ethereum (ETH) reached the level of $1,730. The biggest altcoin did not manage to remain above the crucial $2,000 level.

Other altcoins were hit considerably harder, with Cardano falling by 8 percent and Solana - by 12%. The so-called meme coins were no exception. For instance Dogecoin (DOGE), the leading meme coin, fell by almost 12 percent, and its rival, Shiba Inu, decreased by 9.40%.

Subscribe Our Newsletter

People Need Food and Energy. This Stock Is a Play on Both
People Need Food and Energy. This Stock Is a Play on Both

Orkla (ORK.Norway; ORKLY) is a Norwegian corporation that has businesses that produce both. The previous industrial behemoth turned itself into a consumer-goods corporation, with its primary food sector producing frozen pizza, sauces, and ready-to-eat meals accounting for around 37% of its 2021 sales. The heritage hydroelectric power plants are likewise owned by the Oslo-listed company.

Stocks
European Markets Fall As Moderna Boss Says Vaccine Less Effective Against Omicron
European Markets Fall As Moderna Boss Says Vaccine Less Effective Against Omicron

European stocks tumbled in negative territory on Tuesday, canceling small gains earlier in the week, as increased concerns over the Omicron coronavirus strain could undermine the economic recovery.

Companies
B2BROKER Liquidity B2BROKER Liquidity
Sponsored
Alexander

How Renewable Energy Stocks Can Supercharge Your Portfolio
Renewable energy is booming. Check out the best renewable energy stocks and top investment opportunities in the clean energy sector.

discover
Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

Constantine

Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

Discover Crypto CrypticStreet — an innovative blockchain ecosystem for secure trading, DeFi, and cross-chain transactions. Learn more in this review.

Blockchain
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiriesb2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Hazem

    MetaTrader vs cTrader: Which Trading Platform Shall You Choose?

    MetaTrader vs cTrader: The Full Breakdown

    Сonstantine

    Will Dogecoin Reach $1? Tokenomics and Price Analysis

    Will Dogecoin Reach 1 Dollar Analysis

    Сonstantine

    How to Get a Crypto Exchange License?

    How to Get Crypto Exchange License

    Сonstantine

    Best Crypto to Buy Now: Guide for Investors

    Best Crypto To Buy Now

    Hazem

    Grok vs ChatGPT: What’s the Best AI Assistant You Need in 2025

    Grok vs ChatGPT

    Сonstantine

    How to Choose the Right Liquidity Provider for Your Brokerage

    How to Choose the Right Liquidity Provider for Your Brokerage

    Сonstantine

    Low-Latency Trading Defined: Speed, Strategy and Technology

    Low-Latency Trading Explained

    Hazem

    How Liquidity Depth Affects Slippage in High-Volume Trading

    Liquidity depth and slippage in trading

    Hazem

    What is FIX API Liquidity Connection and How Does it Power Institutional Trading?

    FIX API in institutional trading

    Сonstantine

    OTC Trading Strategies and Technologies to Succeed in Over-the-Counter Markets

    OTC Trading Strategies

    Alexander

    What is OTC Trading? A Complete Guide for 2025

    what is OTC

    Alexander

    Synthetic Futures: A Trader’s Guide to Replicating Positions with Options

    How to Trade Synthetic Futures

    Сonstantine

    Order Book Depth: What It Is And Why It Matters?

    Order Book Depth What It is And Why It Matters

    Alexander

    Spot vs Perpetual Futures: Which Is Right for You?

    Spot vs Perpetual Futures explained

    Hazem

    5 Reasons Traders Are Switching to Perpetual Futures

    5 Reasons to Switch to Perpetual Futures

    Constantine

    Top 3 Liquidity Challenges Facing New Exchanges and How to Solve Them

    Top 3 Liquidity Challenges Facing New Exchanges Today

    Constantine

    Financial Planning in the Cryptocurrency Era — Master Crypto and Digital Asset Strategies

    Financial Planning in the Cryptocurrency Era

    Hazem

    Best Platforms to Trade Perpetual Futures in 2025

    Best platforms to trade perpetual futures in 2025

    Alex

    Top 10 Fintech Website Development Agencies for 2025

    Best Fintech Website Development Agencies for 2025

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.