Inflation Sets News 40-Year High of 9.1%, Bitcoin Fights To Hold $19,000

  • CPI inflation data for the month of June rose to a 40-year high of 9.1%.
  • The highest price increases occurred in the energy sector with fuel and oil prices rising over 98%.
  • Bitcoin struggles to hold $19,000 at press time, down 35% from last month’s $29,500.

The Bureau of Labor Statistics (BLS) released U.S. Consumer Price Index (CPI) inflation data for the month of June showcasing a new 40-year high of 9.1% as bitcoin struggles to hold $19,000 at the time of writing.

Last month, CPI data breached previous records with a then 40-year high of 8.6% while bitcoin was trying to hold its $29,000 support. Since June’s report bitcoin has fallen to current levels representing a 35% decrease while inflation has continued to run rampant.

Federal Open Market Committee (FOMC) meetings. As these rates continue to rise it becomes more expensive to take out debt, but it also becomes more expensive to service old debt. Both of these factors of debt drive down demand due to a lack of liquidity available across the broader market, which in extreme cases can lead to a recession if demand falls off entirely.

In the aforementioned FOMC meeting, Federal Reserve Chairman Jerome Powell said “Hikes will continue to depend on incoming data, but either a 50 basis points or 75 basis points increase seem more likely for the next meeting.”

However, Powell did reiterate that “We’re not trying to induce a recession.” 

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