Bitcoin slumps as U.S. inflation data shows it's highest in 40 years

Bitcoin slumps as U.S. inflation data shows it's highest in 40 years

The latest US Consumer Price Index CPI released showed that the index hit 8.6%, its highest level in 40 years.

Economists had expected the CPI figure to remain flat at 8.3%, the same as in April. The Labor Department's June 10 announcement put to rest any notion that inflation is under control.

U.S. consumer prices have gone up since October 2021, according to data from the U.S. Bureau of Labor Statistics. In March 2022, a peak of 8.5% was followed by a 0.2% drop off the following month, leading to analysts calling it a top for inflation.

Ally Financial Chief Markets and Money Strategist Lindsey Bell said green shoots in the data could point to inflation having topped out, according to ally financial chief markets and money strategist Lindsey Bell.

The consumer price index of May is 8.6%, a step higher than the previous peak in March, according to data released by the U.S. Labor Department on June 10. It marks the highest level in 40 years, which has hindered any talk of inflation having topped.

As a result of the CPI increase, the price of digital currency sinks as a result.

The price of the BTC fell to $29,470 after a 2% swing to the downside on the 13: 30 GMT 5 minute candle. Before bears took control of the cascade of majority lower lows, the ensuing fightback from bulls peaked at $29,835.

The 14: 25 GMT candle has sunk below the initial local bottom to close at $29,400. The Nasdaq — currently at its highest correlation withBitcoin — has fared better. It opened trading at 11,544, climbing 10 points to a peak of 11,554. A less than 1% drop hit a local bottom of 11,482 before moving into an upward trend.

According to a report by Financial Times, U.S. Treasury Secretary Yellen said fighting inflation was a top priority for the White House. The higher-than-expected CPI data puts more pressure on the Fed to action rate increases in the near future.

The outlook forBitcoin is gloomy as a result of this.