With traders retreating for the weekend, bitcoin prices started the Friday session rather slow.
During European trading hours, Bitcoin is a bit stuck at around $30K, showing signs of weakness ahead of the release of the US Consumer Price Index (CPI).
The price of Bitcoin fell on Friday after US consumer price index data revealed that inflation has not abated.
Bitcoin Drops 1.6% Minute After CPI Report
Contrary to expectations, the US CPI rose last month, the data shows. Bitcoin fell 1.6% in the minutes following the release.
Bitcoin price continues to trade below the $30,500 resistance this week and approached the $29,500 support level.
BTC traders experienced a consolidation between $32,000 and $28,650 after the May sell-off that pushed the BTC/USDT pair to a low of $26,350. As a result, the price of BTC fluctuated within a range for about a month, indicating the uncertainty of market participants.
The CPI rose 8.6% year on year last month
According to the US Department of Labor, the consumer price index, the most popular measure of inflation, rose 8.6 percent year on year in May, up from 8.3 percent in April. The market expected a reading of 8 percent.
Source: New York Post
US inflationary pressures have prompted the Federal Reserve to raise interest rates more quickly, indicating additional losses for riskier assets.
Despite negative macro market sentiment and systemic threats in the broader cryptocurrency market, bitcoin has been trading within a narrow range of $28,000 to $31,000 over the past 30 days.
In addition to the high interest rates, inflation, and economic uncertainty that has plagued the entire financial system as a result of Russia’s unprovoked invasion of Ukraine, high interest rates and inflation are among the primary factors contributing to negative market sentiment.
BTC total market cap at $556 billion on the weekend chart | Source: TradingView.com
Bitcoin sheds nearly 65% of ATH
The world’s most sought-after cryptocurrency is down nearly 65 percent from its all-time high, reached in the last quarter of 2017.
Despite the recent losses, Bitcoin’s values are about 1 percent higher than they were a week ago, when it was trading at just under $29,000.
Meanwhile, Coingecko’s Saturday chart depicts bitcoin trading at $2,9271.63, down 1.5 percent in the past seven days.
Featured image from Currency.com, chart from TradingView.com