- US inflation remains at near 40-year high with 8.3% CPI growth.
- Bitcoin broke below its $30,000 support line as inflation exceeded expectations.
- Fuel prices showed their highest 12-month adjusted inflation ending in April at over 80%.
According to a report by the Bureau of Labor Statistics (BLS), US Consumer Price Index (CPI) inflation data is up 8.3%, maintaining a nearly 40-year high, while bitcoin is trading below the $30,000 support level at the time of writing. falling down.
Market expectation for CPI data is hovering at 8.1%. Last month’s inflation numbers broke a 40-year record reported of 8.5%, the biggest continuing increase since 1981, but well below the January 1982 inflation figures of 8.4%.
The utility (piped) gas service and transportation indices rose 3.1%, while the fuel index rose 2.7%, with the energy and transportation index showing the largest monthly increase. Food saw a 0.9% increase for the seventeenth month in a row. Although the energy index saw a decrease of 2.7%, that is by no means when it rose 11% last month.
TradingView data shows bitcoin is down 25% month to month and 40% year to year as the Federal Reserve has positioned itself toward quantitative easing (QT), which is often used to compare inflation rather than quantitative easing (QE). is made to deal with. Anyone who can argue is inflation.
Bitcoin price is currently near $29,000, showing weakness in the near term as the price has not declined low Since July, 2021. Bitcoin increases the QE environment as minted money enters the system whereby a substantial portion of the additional dollars are invested in the asset, often driving up the price. The QT environment raises rates, making it harder to borrow additional funds, which means that many assets lose the flow of liquidity resulting in falling prices.