In the past 24 hours, the cryptocurrency industry has continued to face a downtrend. The cryptocurrency industry has continued moving negatively, causing all major and minor cryptocurrencies to turn red.
This is an alarming situation for all the cryptocurrencies yet again. For now, stagnant price action is being recorded for all the cryptocurrencies.
This indicates yet another major downturn in the price of cryptocurrencies and the entire crypto industry. According to analysts, it may be the rise in the inflation rates in the United States that is causing cryptocurrencies to experience a downtrend.
Since the past week, the fears of inflation rates have started to rise in the United States. Therefore, people may be backing out from their investments in cryptocurrencies welcoming a great dip.
Current Trading Situation of Bitcoin
By the end of the past week, the trading price of Bitcoin was worth $24.5k. Although the bulls tried hard to withstand the selling pressure, they could not hold off the bears for long.
This caused the trading price of Bitcoin to fall below the $22.5k level before it could rebound and settle above $23.5k.
As the week began, the trading price of BTC started moving downstream. The trading price of Bitcoin currently stands at $22.9k.
The trading price of Ethereum has also started to move in the negative zone. The trading price of ETH has moved down to $1,570.
Before the fall, the trading price of ETH was at a high of $1,624. Cryptocurrencies such as Cronos and Ethereum Classic have also experienced huge losses in the same time period.
Inflation Rate Hikes
Although governments worldwide have been trying really hard to control inflation, it is still getting out of hand.
The situation surrounding inflation is getting worse daily, and the Feds hiking the interest rates to fight it off are making it worse for people.
This is why people are now moving away from cryptocurrencies to take care of their primary necessities.
Consumers are not left with much extra money to invest in any trading service and even cryptocurrencies.
If the inflation rates continue rising, the trading price of Bitcoin may continue falling. It is being feared that the trading price of Bitcoin may once again face the same downfall that it did start April.
It is expected that in the running week, the Feds may hike the inflation rates by 75 bps once again. This may pull the trading price of Bitcoin below $20k.
