Bitcoin price has sold out sharply and is down more than 8% in the last 24 hours to trade below $21,500. The largest cryptocurrency by market cap is down 13% this week. At the time of writing, BTC is changing hands at $21,124.
Bitcoin Price Drops On Global Inflation Concerns
The decline began in overnight trading and coincided with unexpectedly high inflation data in Germany. Germany’s annual producer inflation figures rose to a record 37% in July against expectations of 32%. Producer prices reflect the price of goods and services sold by producers for a region. German PPI data is similar to US PPI data. The United States July PPI reading was 9.8% in comparison.
Following the announcement, the probability of the US Federal Reserve increasing the federal funds rate by 75 basis points rose to 44.5% from 41% the day before, according to the CME FedWatch tool.
After moving sideways around $24,000 for a while, it looks like Bitcoin has come out of consolidation and dropped further. The crypto has dropped below the $22,000 level for the first time in 20 days, and the decline doesn’t seem to have stopped yet.
The price of Ether (ETH) has similarly dropped, dropping 8% on the day and 13% on the week. Altcoins have fallen sharply recently, with SOL falling 10% while AVAX and MATIC are down 11% and 12% respectively.
The overall cryptocurrency market cap is $1,015 trillion and Bitcoin’s dominance rate is 39.7%.