Bitcoin, Ether Slip as UK Core CPI Reaches Highest Since 1992
Bitcoin slid under the $27,000 level during the Asia trading day, which lead to a market-wide decline in major cryptocurrencies as traders in broader equity markets reacted to poor U.K. inflation figures.
The hotter-than-expected U.K. core Consumer Prices Index (CPI) rate came in at 6.8% – the highest since 1992 – against an expected figure was 6.2%. This means gains in core prices, excluding food, energy, and tobacco, accelerated by 6.8% last month from 6.2% in March.
The figures are higher than expected for the third month in a row, dampening hopes of an economic recovery. As such, it is likely to add to pressure on the Bank of England to keep raising interest rates in the coming months.
In the past 24 hours, bitcoin (BTC) lost 2% to trade under the psychological resistance level of $27,000, reversing all gains from earlier this week. Ether (ETH) traded at just over $1,800, while solana (SOL) and BNB tokens showed nominal losses.
(Omkar Godbole contributed reporting.)
Edited by Sam Reynolds.