Business News Asia
The bitcoin price continues to fall. Most recently, it fell from the $26,000 mark this morning after the U.S. released the Consumer Price Index (CPI), which was higher than expected. This may prompt the Federal Reserve (Fed) to accelerate its rate hike at this week’s meeting in an effort to curb inflation.
Bitcoin fell $2,278, or -7.42%, to $25,556.60
Bitcoin fell in line with the prices of other risky assets. The Dow Jones Industrial Average closed Friday (June 10) down 880.00 points, or -2.73%, at 31,392.79. Futures fell more than 100 points this morning.
According to the Ministry of Labor, the CPI rose 8.6 percent in May compared with a year earlier. This is the highest level in more than 40 years, or since 1981.
This information is causing investors to speculate that the Fed’s accelerated rate hikes and balance sheet reductions (Quantitative Tightening, QT) will cause less liquidity in risky asset markets, including cryptocurrencies.
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