Bitcoin Price Drops Below $30,000 Amid US CPI

The flagship cryptocurrency bitcoin has plummeted below the $30,000 level on many centralized cryptocurrency exchanges. The value of digital currencies lost nearly $2,000 in less than 1 hour. It happened on May 11, 2022. Such a scenario was noted against the backdrop of the publication of the Consumer Price Index (CPI) in the US, which stopped at 8.3% in April this year.

Market analysts assured that such values ​​indicate that US dollar inflation has reached its peak. Macroeconomic pressures prevented the BTC rate from gaining a foothold above $30,000 and the price movement is returning to new ten-month lows.

According to Cointelegraph Markets Pro and TradingView, BTC/USD experienced a sharp drop from above $31,500 to $29,900 within minutes of the release of the CPI data in the United States. The consumer price index surpassed the preliminary estimate by 0.2% (8.1%), which came as a surprise to the public. Nevertheless, experts noted that it fell by the same 0.2% (8.5%) compared with the data for the month of March.

Well-known trader Mikael van de Poppe said that this is the first decline in the CPI in the last 2 years. This state of affairs gives rise to some optimism both in relation to the traditional market and the cryptocurrency sector.

Members of the international community noted that a lot of talk about the prospects of the crypto market today was also caused by the depreciation of Terra (LUNA) below $1 or 97%.

Earlier edition informed that US Treasury Secretary Janet Yellen again raised the issue of regulating the cryptocurrency market and stablecoins in particular. She assured that after the TerraUSD currency lost its reserves and suddenly ceased to be backed, this topic should be taken very seriously. According to her, the safety of investors is one of the key priorities for US financial policy.

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