Bitcoin’s price movement has returned to new ten-month lows, despite the potential easing of macro pressure. The coin is currently struggling to hold the price and is continuously falling below the hard support of $30,000.
Bitcoin (BTC) fell by $2,500 in minutes on May 11 as the latest US inflation statistics revealed mixed feelings about the economy.
Data from CoinCu and TradingView tracked BTC/USD diving from $31,500 to abruptly pierce the $30,000 support as the Consumer Price Index (CPI) figures went live.
CPI was 8.3%, 0.2% more than expected, but 0.2% lower than the previous month’s reading. Naturally, reactions centered on the possibility that peak inflation had passed.
Prior to the opening of Wall Street trade, crypto markets warned of a new bear market for stocks as major cryptocurrencies joined Bitcoin in falling. Stock futures fell as well.
The mood was already unstable, thanks to events surrounding the US dollar stablecoin, TerraUSD (UST), which lost its USD peg this week and lost a large number of holdings.
Do Kwon, co-founder of developer Terra, pledged to repair and restore the UST peg on social media hours before the CPI report. “Terra’s return to form will be a sight to behold,” said the final post in Kwon’s Twitter thread.
His words, however, did not convince everyone; many investors are still skeptical about Terra’s uncertain future.
Meanwhile, the picture for Bitcoin was barely brighter than it was at Terra. Large-volume investors had moved assets in recent days, according to on-chain analytics resource Whalemap, particularly those who had purchased BTC for more than $15,000 above the current spot price.
The stock market, which is already closely linked to Bitcoin, is also not very positive. The Dow Jones Industrial Average made big moves before and after the open, including a solid gain at one point. But the major indexes sold off hard, all hitting fresh 52-week lows. shortly before the close, the Dow Jones fell 1%, the S&P 500 1.6%, and the Nasdaq 3.2%.
Will the market continue its downward trend in the coming days when the inflation index seems to be on track to correct according to the Fed’s schedule?
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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