Bitcoin price hits 7-day low as US warns of 'highly elevated' CPI data
Bitcoin (BTC) carried through threats of new local lows July 12 as the White House warned of “highly elevated” inflation.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD approaching $19,500 prior to the Wall Street open, down over 4% on the day.
Having failed to hold $20,300 support, the pair appeared to react badly to comments on the inflation outlook from White House press secretary Karine Jean-Pierre.
Markets were already primed for higher than expected figures for June from the Consumer Price Index (CPI), which made new forty-year highs in May.
“So on Wednesday, we will have new CPI inflation data, and we expect the headline number, which includes gas and food, to be highly elevated, mainly because gas prices were so elevated in June,” she told reporters at a press briefing July 11.
The trip to $19,520 meanwhile marked Bitcoin’s lowest levels in a week.
“Tomorrow is going to be decisive,” Cointelegraph contributor Michaël van de Poppe told Twitter followers.
He added that the worst of the reaction should come before the CPI data release, but that the U.S. dollar index (DXY), itself at its highest in two decades, remained a source of interest.
“Honestly saying, 'sell the rumor, buy the news' seems to be an implication,” the tweet continued.
Particularly high inflation risks losses across risk assets due to the associated risk of central bank monetary tightening to tame it, as is already being seen in the U.S. DXY, as Cointelegraph reported, often makes decisive moves upward in times of financial weakness.
Psst... the dollar $DXY is telling us that inflation hasn't peaked.
DXY stood at 108.47 at the time of writing, having spiked higher into the new week to reach its strongest levels since October 2002.
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