These are exciting times in crypto! This is also apparent today with the bitcoin (BTC) price that dips below $30,000. This dip seems to be a direct result of the announcement of the Consumer price index (CPI) in the United States, or the inflation figures.
Bitcoin price plunges below $30k
It did not take long before the BTC price reacted negatively to the inflation figures. The US CPI in April stands at 8.3%, which is still an unprecedented high.
CPI composition pic.twitter.com/6xwwzZ8tgX
— zerohedge (@zerohedge) May 11, 2022
Inflation is therefore higher than expected and the markets react negatively to the news. The traditional markets are predominantly red. The high correlation that bitcoin has shown in recent times with these markets continues to exist today. The bitcoin price fell below $30,000 immediately after the figures were announced. In short, it’s a bloodbath.
Bitcoin approaches critical support zone again
With the decline, the BTC price is again on the edge of the abyss. Yesterday and today the price still consolidated in the price range between $30,000 and $32,700, but that range now seems to be breaking out at the bottom.
At the time of writing, bitcoin is trading at a price of $29,455 on Coinbase. The bitcoin euro price on the Dutch Bitvavo is €27,878.
The key support that now has all eyes on is the one near $29,000. This is the zone where bitcoin found support in January and July 2021. come the bulls Looking around the corner again to buy the dip? In any case, the overall situation doesn’t look too good, economist Alex Krüger calls it “the perfect storm.”
The perfect storm
— Alex Kruger (@krugermacro) May 11, 2022
He will undoubtedly also refer to the situation regarding Terra (LUNA). That altcoin dropped more than 95% in the last 24 hours! You can read what’s going on here.