Bitcoin and ether fell on Sunday, amid a broader decline in cryptocurrencies, in the wake of data showing that inflation in the United States reached its highest level in 40 years. Ether fell as much as 5% to $1,445.56, its lowest level since March 2021, while bitcoin fell to $2,7264.65, its lowest since May 12. Friday’s US inflation data beat expectations, dashing any hopes that the price slump had peaked.
Bitcoin and other cryptocurrencies have struggled in recent months as the Federal Reserve raised interest rates. The majority of currencies declined by rates ranging between 10% and 30%.
Total long cryptocurrency sales topped $100 million for a third day in a row on Sunday, following selling $258 million on Friday and $290 million on Saturday, according to Coinglass data, which translates to a jump of $648 million in 3 days.
After the consumer price index on Friday for the month of May, which exceeded expectations, stocks fell, as the week witnessed a decrease in the Standard & Poor’s index by 5.1%, and closed on Friday at 3900 points, down by 2.9%. Laurie Calvasina, head of US equity strategy at RBC Capital Markets, says the market wants some clear and convincing evidence that the Fed can do this without starting a recession.
Next week appears to be subject to what Federal Reserve Chairman Jerome Powell will say on Wednesday followingnoon, as he briefs the press on the outcome of the two-day central bank meeting. The Federal Reserve is widely expected to raise the federal funds target rate range by half a percentage point, but the hot inflation data for May made markets nervous regarding whether policymakers might be more hawkish, or they would warn of a faster pace of rate hikes. interest in the future.
The Fed will release economic forecasts and expectations for new interest rates, but whatever Powell says regarding rate increases in the summer and fall, might help determine the course of turbulent financial markets. It can cause stagnation.
(agencies)
