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Bitcoin bounces over $ 30,000 despite hot US inflation reports

Bitcoin Coin is on the screen displaying Bitcoin (US dollar exchange rate).

Fernando Gutierrez-Jureres | Image Alliance | Getty Images

Bitcoin prices turned positive on Wednesday after falling below $ 30,000 for the second time this week.

Bitcoin was up less than 1% to $ 31,520.63, according to Coin Metrics. Earlier that day, it fell to $ 29,026.66. This is the lowest point since December 2020.

Cryptocurrencies fell in stocks early Wednesday after the Bureau of Labor Statistics reported that consumer prices rose 8.3% in April. This was slightly higher than expected by the economists surveyed by Dow Jones.

It surprised investors and led them to end their risk assets, including crypto. Cryptocurrencies are highly correlated with the S & P 500 and, more recently, the Nasdaq Composite Index.

Michael Rinko, Venture Associate of AscendEx, said: “As the Fed continues to hike, stocks continue to fall and cryptocurrencies are declining accordingly. In general, it has created a lot of fear in the market.”

Ether remained negative. Initially reduced by 8% before mitigating the loss. The last was less than 1% at $ 2,331.69.

This is the second time Bitcoin has been in the $ 29,000 range this week. Analysts called the key level of the largest cryptocurrency by market capitalization at $ 30,000 and said it could fall further if it couldn’t be maintained.

This time last week, Bitcoin reached its recent high of $ 40,000, but quickly turned around the next day and has steadily hit a new low ever since.

https://www.cnbc.com/2022/05/11/bitcoin-drops-below-30000-as-hot-inflation-report-causes-investors-to-shun-risky-assets.html Bitcoin bounces over $ 30,000 despite hot US inflation reports

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