“We continue to view the current macro environment as a headwind for Bitcoin,” 10x Research’s Markus Thielen said.
Market analysts have cautioned that Bitcoin and gold may face further headwinds this year following a 4.2% annual increase in the US Consumer Price Index (CPI) in May, according to figures released on Wednesday.
The surge in the consumer price index, a broad gauge of goods and services costs across the US economy, deflated hopes that the central bank will reduce rates, with some analysts now expecting rate hikes later this year — bad news for riskier assets such as crypto.
US inflation surges to a three-year high. Source: Trading Economics
Bitcoin has already had a troubling first half of the year. Bitcoin prices have fallen 36% since January, while gold is down 23% from its January peak. At the same time, crude oil prices have surged more than 50% over the same period.
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