Bitcoin’s price fell below US$20,000 Tuesday morning in Asia, erasing last week’s gains, as both crypto and traditional markets await the latest U.S. inflation data due on Wednesday.
See related article: Bitcoin price crosses US$22K; Fed cools recession fears
- The world’s largest cryptocurrency fell 4.5% in the past 24 hours to trade at US$19,989 at press time, according to CoinMarketCap.
- Ethereum fell 6% in the same period, trading at US$1,096 at press time.
- All other cryptos in CoinMarketCap’s top 10 were suffering losses, with Solana and Dogecoin dropping at least 8% to trade at US$33.36 and US$0.06, respectively.
- June’s Consumer Price Index (CPI) — a measure of U.S. inflation — may reveal if the U.S. Federal Reserves’ aggressive approach to tame record inflation has had any impact and hint at how the central bank may adjust interest rates.
- Traditional markets also took a hit, with the Dow Jones Industrial Average closing down 0.5%, the S&P 500 Index finished the day 1.15% lower while the NASDAQ Composite Index ended down 2.3% on Monday.
- The Bitcoin hash rate is expected to take a hit in the coming days with Texas-based miners pausing operations as the state expects energy shortages due to the current heat wave.
See related article: ‘Wolf of Wall Street’ says Bitcoin investments will be profitable in three to five years