After headline US inflation data showed that the consumer price index (CPI), was hotter than expected, Bitcoin prices fell below $20,000 Wednesday.
The US Labor Department data showed that CPI rose 9.1% year over year for the most dramatic move since 1981, and 1.3% month on month in June, which was the fastest since 2005.
These data were hotter than the 1.1% month-on-30 and 8.8% year over-year estimates. This continues the hot streak that has been correlated with the extraordinary rise in living costs.
Bitcoin drops below $20,000
After the inflation report, US stock futures plummeted sharply. The S&P 500 futures declined more than 1.5% while the Nasdaq futures plummeted by 1.9%. Dow futures fell more than 300 points or -1% before market open.
The same reaction was seen on Wall Street and in the crypto market. The psychologically significant level of $20,000. was reached by Bitcoin, the top cryptocurrency. Stock futures fell.
BTC/USD dropped to $18,892 because of volatility on cryptocurrency exchange Coinbase. According to CoinGecko data at the time this article was written, Bitcoin price had fallen 4.8% over the last 24 hours.
Coinbase reported that the BTC/USD exchange rate fell to $19,000 below its previous high. Source: TradingView
The rest was also feeling the downside, with Ethereum falling 4.8% close to $1,000 and BNB and XRP dropping 6.6%, 6%, and 5.7% respectively.