Bitcoin

Inflation finally has fallen to 8.3%, but Bitcoin is still struggling below $30,000

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 is under the influence of the macro economy

Bitcoin (BTC) fell by $2,500 in minutes on May 11 as the latest US inflation statistics revealed mixed feelings about the economy.

BTC 15m chart. Source: CoinCu

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.

CPI Inflation Rate Is Finally Falling But Not Enough

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.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

26 minutes ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

56 minutes ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

2 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

2 hours ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

3 hours ago

Why Qubetics, NEAR Protocol, and IMX Are Dominating Crypto: The Best Altcoins to Join Today for Game-Changing Returns 

Discover why Qubetics, NEAR Protocol, and Immutable X are the best altcoins to join today,…

5 hours ago

This website uses cookies.