Rising inflation in the US could be a sign of danger for the crypto market

The price of bitcoin fell to $19,078 on Wednesday after US inflation hit a record high of 9.1 percent. This high rate of inflation over the past 40 years is much higher than expected. With this, the Federal Reserve of America can increase the interest rate again.

After the Consumer Price Index (CPI) report came out, the US government said that this data is out of date and does not reflect the full impact of the reduction in fuel prices in the last almost a month. The government claimed that core inflation has come down for the third consecutive month. However, experts in the crypto market expect a sharp decline in cryptocurrencies again due to the rise in inflation. Earlier in May, the stock, bond and cryptocurrency markets fell sharply after information about inflation data was high. Due to rising inflation, the Federal Reserve raised the interest rate by 0.75 percent in its June meeting.

There has been a selloff in the crypto market for the past few months due to slowdown and some other reasons. Due to this the prices of cryptocurrencies have come down and investors have suffered huge losses. Due to the slowdown in the crypto market, many firms in this segment are cutting their workforce to reduce costs. Coinbase, one of the major crypto exchanges, also recently decided to reduce its workforce by 18 percent. Headquartered in the US, the firm says that it has taken this step to cut costs in this difficult period of the industry. The decision is expected to result in layoffs of over 1,000 employees of the exchange.

Earlier crypto trading and lending platform BlockFi announced the removal of around 200 employees and crypto exchange Crypto.com about 260 employees. Both these firms have given similar reasons for reducing the workforce. Some other firms are also taking cost-cutting measures. The market capitalization of crypto has come down to below $1 trillion. The crypto hedge fund Three Arrows Capital is getting liquidated because of this. The Singapore-based firm was in trouble due to a massive sell-off in the crypto market.

Cryptocurrency prices in Indian exchanges

Download the Gadgets 360 Android app and follow us on Google News for the latest tech news, smartphone reviews and exclusive offers on popular mobile phones.

Related news

Leave a Comment