As traders prepare for the weekend, bitcoin prices remained almost flat early in Friday’s session. Cryptocurrency prices have generally stabilized in recent days after a good start to the week. Bitcoin price fell on Friday as U.S. CPI statistics revealed that inflation was far from slowing.
Following a strong start to the week, when BTC reached nearly $32,000, prices have since consolidated, trading just below $30,000. The king coin has been trading lower so far in Friday’s session, continuing to trade below this level and hitting an intraday low of $28,856 in the process.
Further losses for risky assets?
The largest cryptocurrency by market cap plunged 1.5 percent in minutes after the release of the data, which indicated that the consumer price index (CPI) in the United States increased in May, against forecasts for a decrease.
According to the Department of Labor, the Consumer Price Index climbed by 8.6% year over year in May, compared to 8.3% in April. The market was expecting an 8.1 percent reading. Inflationary pressures in the United States have prompted the Federal Reserve to raise interest rates more quickly, implying further losses for risky assets.
BTC is currently trading below $30,000, with the possibility of more declines. The coin has declined by more than four percent in the last 24 hours.
Prices increased across the board, with the largest drivers to inflation being housing, fuel, and food. The data reflects the impact of the Russia-Ukraine conflict, as well as the last two years of loose monetary policy in response to the COVID-19 pandemic.
As a result, the Fed will have to raise rates even higher to counteract price inflation. According to CME Group data, 95.7 percent of investors expect the Fed to raise rates by 125 to 150 basis points at its meeting next week.