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

S&P 500, Nasdaq Mark Record Closing, Dow Eases - Wall Street Close
Wall Street Close: S&P 500, Nasdaq Mark Record Closing, Dow Eases

Despite a mixed day result on Thursday, US equities markets saw a small uptick in trade mood. Strong US statistics and statements from Fed members, as well as a fall in US inflation expectations and Treasury rates, might be the explanation.

Stocks
The $44 Billion Twitter Deal is Back on the Table. Elon Musk is Serious This Time

Alexander

The $44 Billion Twitter Deal is Back on the Table. Elon Musk is Serious This Time

The founder and CEO of Tesla has finally decided to resubmit his offer to acquire Twitter.

Companies
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Alexander

Is Infinite Banking a Scam? Unveiling the Truth Behind the Concept
In the world of personal finance, there is a concept that has gained attention and sparked controversy: infinite banking.

discover
Indexes, graphs

Liquidity Provider

What Is Forex Liquidity?

Let's find out what Forex Liquidity is, problems caused by the lack of liquidity, and responsibilities of Liquidity Providers and Market Makers.

Liquidity
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    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

    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

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business
    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.