Bitcoin drops to lowest level since December 2020 after US inflation
The price of Bitcoin has fallen in recent days in the face of renewed risk aversion from operators in the financial markets. BTC/USD is down sharply alongside more traditional risky assets following US inflation figures.
US inflation came out above expectations, up 1% in May alone (i.e. 12.6% at an annualized rate) and 8.6% over one year, its highest level since 1982, which should push the Fed to be even more aggressive in its monetary tightening and rule out any hypothesis of a rapid pivot by the Fed.
Inevitably, Bitcoin, like other risky assets, does not appreciate these prospects of even greater monetary tightening. BTC/USD has fallen more than 15% since the release of inflation figures to its lowest level since December 2020 at around $25,000.
Bitcoin price daily chart – key levels