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Bitcoin falls below $82,000 after higher US inflation data

Bitcoin falls below $82,000 after higher US inflation data

Bitcoin fell below $82,000 on Wednesday after US inflation data came in higher than expected.

The price dropped from above $83,000 earlier in the day, while Ethereum also fell.

The data showed stronger price pressures in the United States, renewing speculation that the Federal Reserve could raise interest rates again.

Higher rates and bond yields can make cryptocurrencies less attractive because they do not pay interest.

Bitcoin was trading in a narrow range since late September, after recovering from a summer low of about $60,000, but it remained well below its record above $120,000 reached about a year earlier.

Analysts also pointed to weak demand and limited support from institutional investors, which can leave prices more vulnerable to swings.

The immediate pressure on crypto prices comes from inflation and interest-rate expectations, while the sources give no further forecast for Bitcoin's next move.

4 sources

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