- With Bitcoin’s price falling, miners may be in for a rough ride as well.
- After the readings, other major cryptocurrencies also went negative for the day.
Minutes after statistics indicated that U.S. inflation was more than predicted in April, Bitcoin (BTC) fell below $30,000 on Wednesday. As a result, the price of Bitcoin (BTC) tumbled more than 6% from intraday highs and reached a low of $29,100. After the readings, other major cryptocurrencies also went negative for the day.
Major Currencies in Red
Ethereum is down roughly 7%, while Binance Coin and Ripple are both down 16% and 20%, respectively. In addition, after statistics indicated that the U.S. consumer price index (CPI) jumped 8.3% in April, more than the forecast of 8.1%, BTC fell sharply, mirroring what was observed in U.S. stock futures.
This month’s Consumer Price Index (CPI) data reveals that inflation is reaching its high, but the rate of price increases is expected to continue for some time to come. As a result of this year’s strong inflation, the Federal Reserve and other major central banks are expected to raise interest rates often, which is bad news for cryptocurrency markets.
After the Federal Reserve boosted interest rates last week, BTC was already under pressure. Tokens may drop below $28,000 due to this new news, leading to even greater selling pressure. A protracted era of lax monetary policy has resulted in a surge in inflation this year. The Russia-Ukraine conflict has also contributed to this problem.
BTC.com, a Bitcoin mining performance monitoring company, reports that the difficulty of mining Bitcoin has increased dramatically. In addition, Wu blockchain, a well-known cryptocurrency analyst, highlighted that the difficulty of mining Bitcoin had risen by approximately 5 percent. This new trend may bode ill for Bitcoin miners. With Bitcoin’s price falling, miners may be in for a rough ride as well.