Bitcoin plummeted below the $27,000 level during the Asian trading day, resulting in a general decline in major cryptocurrency prices. This decline coincided with traders in broader equity markets responding to the release of higher-than-anticipated UK core Consumer Prices Index (CPI) figures.
The latest data revealed that the UK’s core CPI rate reached 6.8%, surpassing expectations and marking the highest level since 1992. The core prices, excluding food, energy, and tobacco, recorded a month-on-month acceleration from 6.2% in March to 6.8% last month.
UK CPI figures higher than expected
The latest figures indicate that UK inflation has exceeded expectations for the third consecutive month, casting doubt on hopes of an economic recovery. This development is likely to increase pressure on the Bank of England to continue raising interest rates in the upcoming months.
However, there was a significant drop in UK inflation during April due to the decline in energy prices and the diminishing impact of Russia’s invasion of Ukraine on the annual consumer price comparison.
According to the Office for National Statistics, headline CPI inflation stood at 8.7% year-on-year, a decrease from 10.1% in March but still higher than the consensus estimate of 8.2% from a Reuters poll of economists.
CoinMarketCap data suggests that Bitcoin has slipped from its 24-hour high of $27,386 and is tading at $26,729 at press time. BTC is down by 2% as per the latest data. Ethereum follows suit with a 2% drop and is trading at $1,816 from a 24-hour high of $1,859. The slump has triggered a whole market bleed, as the majority of the coins are trading in the red.
The global cryptocurrency market cap has also decreased by 1.82% in the last 24 hours and stands at $1.12 trillion at press time. The top 100 altcoins have also experienced single-digit losses amidst the bearish slump.