The macroeconomic data from the United Kingdom added to that of the US puts pressure on cryptocurrencies and begins to worry about the measures that the central banks will take in relation to rates.
The cryptocurrencies They fall again this Thursday, April 20. Bitcoin sinks 2% in the last 24 hours and falls below $29,000, touching a week low. Meanwhile, Ethereum is once again operating below $2,000 and is beginning to show signs of weakness after the Shanghai update. The rest of the market operates with a majority of drops of up to 3% led by Solana (SOL). The surprise appears in Dogecoin, which rises to 4% and begins a bullish momentum.
According to Bolsamanía, analysts point to the inflation data from the United Kingdom as the turning point for cryptocurrencies. The British CPI fell to 10.1% in the third month of the year and the core remained at 6.2% year-on-year, above expectations.
“One way or another, the UK CPI report we had in the European session today made the market more vulnerable and may have been the piece of macro data that pushed that big seller to pull the trigger, leading to a cascade of sell orders as we fell below $30,000”said Matt Weller, global head of research at Forex.com broker, in an interview with ‘CoinDesk TV’.
According to Markus Levin, co-founder of XYO Network, “it looks as if all these macroeconomic concerns may finally be catching up with bitcoin”. “The UK inflation figures seem to be hitting too close to home, both in the US and in other countries where monetary policy is tightening and recession fears are growing,” he explains.
In this regard, it should be noted that 12-month inflation expectations in the United States rose in April to 4.6%, one point above the level set in March. Likewise, Raphael Bostic, president of the Atlanta Federal Reserve, came out in favor of a 25 basis point hike in interest rates at the central bank’s May conclave.
Likewise, in the cryptocurrency space, the words of Brian Armstrong, co-founder and CEO of Coinbase, continue to resonate about the company’s possible departure from the United States and its predisposition to a “long” legal confrontation against the SEC.
Source: Ambito
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