Bitcoin price sold off sharply and was recently trading below $21,500, down more than 8% over the last 24 hours. The largest cryptocurrency by market capitalization is down 13% for the week. At the time of writing, BTC is changing hands at $21,124.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin Price Plummets on Global Inflation Concerns
The decline started during overnight trading, coinciding with unexpectedly high inflation data in Germany. Germany’s annual producer inflation figures rose to a record high of 37% in July, versus expectations of 32%. Producer prices reflect the price of goods and services sold by manufacturers for a region. The German PPI data is analogous to U.S. PPI data. The United States July PPI reading was 9.8%, by comparison.
Following the announcement, the probability of the U.S. Federal Reserve raising the federal funds rate 75 basis points increased to 44.5% from 41% a day earlier, according to the CME FedWatch tool.
After moving sideways around the $24k mark for a while, Bitcoin seems to have broken out of the consolidation and dropped lower. The crypto has now breached under the $22k level for the first time since more than 20 days ago, and the decline doesn’t look to have stopped yet.
Ether’s (ETH) price fell similarly, declining 8% on the day and 13% for the week. Altcoins recently dropped sharply, with SOL falling 10% while AVAX and MATIC declined 11% and 12%, respectively.
The overall cryptocurrency market cap stands at $1,015 trillion, and Bitcoin’s dominance rate is 39.7%.
Read more:
- The Accumulation We Are Seeing Now Might Be A Direct Sign Of Upcoming Reversal In Long-Term Future
- Bitcoin Price Flirted With $25,000 While Ethereum Broke Through $2,000 Before Both Lost Steam