Earlier today, the U.S. Bureau of Labor Statistics disclosed the Consumer Price index (CPI). The data revealed that inflation in the U.S. climbed to a 40-year high, sending ripples throughout the crypto and fiat markets.
Following the announcement, Bitcoin dropped below the previous support of $19K. It is worth noting that during the last month, Bitcoin hinged around the $19,000 mark.
Analysts claim that Bitcoin may drop to the $17.6K mark, thus tanking by over 8%. As of writing this article, Bitcoin is priced at $18,943, with a 0.85% loss in the last 24 hours.
Similarly, Ethereum’s pricing also saw a sharp decline and dropped to a low of $1209. It is currently priced at $1256, down by 3.23% within the last 24 hours.
The same trend was observed for altcoins Ripple, Solana and Cardano.
Economists speculate that the rise in inflation could force the Federal Reserve to raise the interest rates by 75 points.
