Crypto Cuts Losses Sparked by Inflation Data

Bitcoin and ether have pared losses after they fell on Sunday (June 12), as a bigger retreat was happening in reaction to the 40-year-record inflation, a Bloomberg report says.

That came as ether was down by 6.4%, hitting $1,424.40, which was the lowest price since March 2021.

And bitcoin was down to $26,876.51, its lowest since May 12.

The numbers for every other token weren’t much better – dogecoin and avalanche were down by around 9.4% and 13% respectively.

As this was going on, inflation was even worse than expectations feared. The report notes that any hopes about the rising prices peaking was “dashed.”

Vijay Ayyar, vice president with Luno, a crypto platform, said it was likely that things would keep on course with the FOMC meeting coming up.

“If one looks at previous bear markets, bitcoin has declined around 80%-plus normally, with altcoins typically doing 90%-plus,” said Ayyar. “If that remains the case, we could see much lower bitcoin prices over the next month or two.”

Bloomberg notes that the inflation data was helping to fuel the downward action, indicating that it was very likely that things would continue in the same manner.

According to some analysts, if bitcoin was below the high $20,000s level, there was a possibility it could go down quickly, with levels like the 200-week moving average near $22,000.

PYMNTS wrote that MicroStrategy hasn’t been cowed by the changes of bitcoin’s value, with the company reportedly not planning to unload any of its bitcoin holdings, per new Chief Financial Officer Andrew Kang.

Read more: Bitcoin’s Plummet Is No Matter to MicroStrategy

Kang was hired recently. The company said in April that it planned to give employees the option to invest their 401(k) funds in bitcoin.

This comes as MicroStrategy has joined Block and Tesla as one of the few businesses with substantial bitcoin holdings – MicroStrategy has made headlines for buying 129,000 bitcoins, and it currently doesn’t plan to sell any of them.

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