US inflation data was released today. These are exceptionally high and are expected to exert a lot of influence on the Bitcoin price.
How will the Bitcoin price react to the inflation data?
The Bitcoin price has been around $30,000 for a while, but today, exactly as inflation data was released, it has fallen to $29,000. Most of BTC’s losses in 2022 were caused by fears of rising inflation and today’s high numbers are of no help at all. High inflation will lead to interest rate hikes.
In April inflation was 8.3% and while many analysts had expected it to fall somewhat in May, the opposite is true. In May, inflation in America rose to 8.6%â€
According to several analysts, the rising inflation in America could again lead to a sell-off of risky assets such as Bitcoin. A price drop to the $26,000 mark is therefore not out of the books.