The Inflation Rate figure has been rising for the third consecutive month since January. This has led to increased concern in the market. Additionally, BTC experienced a drawdown, triggering a wave of liquidations in future contracts. As a result, trading volumes have seen a 7% increase to $35.6 billion over the past 24 hours.
The rise in the Consumer Price Index (CPI) is causing fiat currencies like the dollar to lose their purchasing power. This is especially notable when CPI reaches high values, impacting the overall economic landscape. The digital asset market is known for its volatility, and this recent turn of events has further highlighted this trait. The transition of key indicators to the red zone has resulted in what is being described as an ‘inadequate’ drawdown in the asset price, with it falling below $61,000.
This has added to the existing unease within the market.
