in

Bitcoin falls below $ 30,000 as US consumer price index (CPI) of 8.3% shows inflation peaking

Bitcoin falls below $ 30,000 as US consumer price index (CPI) of 8.3% shows inflation peaking

Bitcoin (BTC) fell $ 1,500 in minutes on May 11 when the latest inflation data from the US gave a mixed outlook on the economic outlook.

One hour candle chart of the BTC / USD (Bitstamp) pair. Source: Trade View

New Bitcoin hit a 10-month low

According to data from Cointelegraph Markets Pro and TradingView, the BTC / USD pair fell from $ 31,500 to sharply surpass the $ 30,000 mark with the release of the Consumer Price Index (CPI).

At 8.3%, the CPI beat is estimated at 0.2% but was still down 0.2% from last month ‘s reading. Reactions naturally began to focus on the idea that the peak of inflation may be over.

“It is higher than expected, but it shows the first fall in two years, as last month we saw an inflation of 8.5%. Spread and inflation could be a highlight, ”he said writing Cointelegraph participant Michaël van de Poppe as part of a follow-up tweet.

Before trading began on Wall Street, crypto markets nevertheless highlighted the prospect of further stock declines as large altcoins went into bitcoin as they headed south. Stock futures were also down.

The mood was already volatile, due to events related to the stablecoin US dollar, TerraUSD (UST), which lost a large number of jobs after losing its peg to the dollar this week.

Do Kwon, co – founder of creator Terra, has pledges to rebuild and restore the UST’s anchorage. broadcast on social media a few hours before the CPI data.

“Terra’s return to form will be a sight to behold,” he argues as part of the final message of Kwon’s Twitter thread.

His words did not impress everyone, however, as analyst Dylan LeClair pointed out in response.

Luna’s supply will be diluted indefinitely in an effort to restore parity, and short sites will accumulate to bury it in the dust, causing it to dilute at lower and lower prices. zero guarantee that he is crazy
– Dylan LeClair (@DylanLeClair_) May 11, 2022

moving whales

When it comes to bitcoin, the picture is not much more positive than the Terra picture.

Read also: Terra ‘Relief’ Still Ahead: LUNA Breaks Under $ 5, Bitcoin Strikes $ 138,000 in UST

Blockchain analytics resource Whalemap has warned that high-volume investors have settled funds over the past few days, including those who bought BTC for more than $ 15,000 above the current money market price.

“Lots of whale activity yesterday,” the company tweeted along with a chart showing bitcoin sets being transferred from a wallet.

Lots of whale activity yesterday. Even the best of us were not prepared for a drop like this. Many whales who bought $ BTC at $ 40,000- $ 34,000 funds moved funds yesterday. PS The last bubble is the exchange of funds from one cold wallet to another, so it can be ignored pic.twitter.com/7C2fmB99k1 – whalemap (@whale_map) May 11, 2022

As Cointelegraph reported, exchange balance sheets saw a significant rise during the initial voyage of bitcoin below $ 30,000, in contrast to a general buying trend. Previously, exchange reserves were at their lowest level since 2018.

The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. All investments and trades involve risk. You should do your own research before making a decision.

Kosovo police seize hundreds of bitcoin mining machines

Kosovo police seize hundreds of bitcoin mining machines

The cryptocurrency Bitcoin (BTC) is resilient in the face of market instability

The cryptocurrency Bitcoin (BTC) is resilient in the face of market instability