US CPI data did not show that inflation is not close to cooling. After that, Bitcoin (BTC), Shiba Inu (SHIB) and gold prices fell. Here are the events and the forecasts of the analysts!
Bitcoin and SHIB fell sharply
The US consumer price index (CPI) expanded in May, contrary to contraction expectations. According to a report by the US Department of Labor, the CPI rose 8.3% in April. However, according to May data, there was an annual increase of 8.6%. However, the markets were expecting a reading of 8.1%. After that, Bitcoin fell by 1.5% within minutes. BTC is currently trading below $30,000 and it has the potential to drop further. The worst-case scenario shows that the coin could fall as low as $15,000 in the short term.
High inflation now indicates that the FED may make sharper rate hikes. This means further declines for risk-driven markets like Bitcoin. BTC has close ties to US tech stocks. Therefore, it is predicted that the coin will likely suffer more in the coming days. Rising interest rates and higher Treasury yields are hurting tech stocks and therefore BTC. It is predicted that the weakness in BTC will reflect on the crypto market. Many altcoins, including most Shiba Inu, also fell the day after the inflation reading. Thus, as always, they reflected the losses in BTC.
Shiba Inu is on the decline
The Shiba Inu maintains its downward outlook despite the recent developments. The fact that the US CPI data showed the opposite of the market expectations also affected the SHIB price. After the 1.5% drop in Bitcoin, SHIB fell 3.8% in a short time. The popular memecoin is likely to test much lower prices, given that there is a possibility of Bitcoin dropping to $15,000. Accordingly, the possibility of a greater decline depends on the Fed’s interest rate hikes to suppress US inflation.
Gold prices were also affected by US inflation
As we reported on cryptocurrencies, gold like cryptocurrencies markets began to decline after the US inflation. Accordingly, gold prices experienced a continuous decline below $1,850 per ounce. After that, it saw some technical selling pressure in the market. However, the precious metal is experiencing a little bullish momentum even after the inflation data. According to some market analysts, the latest inflation data is a mixed situation for gold investors. Rising consumer prices seemed to keep real interest rates low. However, the latest data will continue to support the Fed’s aggressive monetary tightening stance of the Central Bank. The Federal Reserve signaled that it would raise interest rates by 50 basis points at its June and July meetings. However, markets are taking prices in anticipation of at least a third 50 basis point move after the summer.
