Categories: Bitcoin Latest News

Inflation Sets News 40-Year High of 9.1%, Bitcoin Fights To Hold $19,000

CPI inflation data reached a 40-year high of 9.1% in June with the largest price increases occurring in the energy sector, seeing fuel and oil rising almost 100%.

CPI inflation data for the month of June rose to a 40-year high of 9.1%.The highest price increases occurred in the energy sector with fuel and oil prices rising over 98%. Bitcoin struggles to hold $19,000 at press time, down 35% from last month’s $29,500.

The Bureau of Labor Statistics (BLS) released U.S. Consumer Price Index (CPI) inflation data for the month of June showcasing a new 40-year high of 9.1% as bitcoin struggles to hold $19,000 at the time of writing.

Last month, CPI data breached previous records with a then 40-year high of 8.6% while bitcoin was trying to hold its $29,000 support. Since June’s report bitcoin has fallen to current levels representing a 35% decrease while inflation has continued to run rampant.

The yearly price increases become far more obtuse when viewed within each sector. For instance, the prices of fuel and oil have risen over 98%, energy commodities 60%, gasoline 59%, and utility gas services have increased 38%. Even on the lower end of the spectrum; electricity went up 13%, food at home has risen 12%, new vehicles rose 11%, and transportation costs have gone up almost 9%.

While inflation continues to make the cost of living incorrigible, commodities and energy services continue to rise making it difficult for both the customer and business owner to accomplish their task at hand. As the business owner continues to struggle in finding a fairly priced supply, the consumer pays expeditious demands to business owners.

This inflation feedback loop continues to be a staggering puzzle as the Federal Reserve has taken to increasing rates over the past few Federal Open Market Committee (FOMC) meetings. As these rates continue to rise it becomes more expensive to take out debt, but it also becomes more expensive to service old debt. Both of these factors of debt drive down demand due to a lack of liquidity available across the broader market, which in extreme cases can lead to a recession if demand falls off entirely.

In the aforementioned FOMC meeting, Federal Reserve Chairman Jerome Powell said “Hikes will continue to depend on incoming data, but either a 50 basis points or 75 basis points increase seem more likely for the next meeting.”

However, Powell did reiterate that “We’re not trying to induce a recession.”

Read More

CPI inflation data reached a 40-year high of 9.1% in June with the largest price increases occurring in the energy sector, seeing fuel and oil rising almost 100%.

CPI inflation data reached a 40-year high of 9.1% in June with the largest price increases occurring in the energy sector, seeing fuel and oil rising almost 100%.

CPI inflation data for the month of June rose to a 40-year high of 9.1%.The highest price increases occurred in the energy sector with fuel and oil prices rising over 98%. Bitcoin struggles to hold $19,000 at press time, down 35% from last month’s $29,500.

The Bureau of Labor Statistics (BLS) released U.S. Consumer Price Index (CPI) inflation data for the month of June showcasing a new 40-year high of 9.1% as bitcoin struggles to hold $19,000 at the time of writing.

Last month, CPI data breached previous records with a then 40-year high of 8.6% while bitcoin was trying to hold its $29,000 support. Since June’s report bitcoin has fallen to current levels representing a 35% decrease while inflation has continued to run rampant.

The yearly price increases become far more obtuse when viewed within each sector. For instance, the prices of fuel and oil have risen over 98%, energy commodities 60%, gasoline 59%, and utility gas services have increased 38%. Even on the lower end of the spectrum; electricity went up 13%, food at home has risen 12%, new vehicles rose 11%, and transportation costs have gone up almost 9%.

While inflation continues to make the cost of living incorrigible, commodities and energy services continue to rise making it difficult for both the customer and business owner to accomplish their task at hand. As the business owner continues to struggle in finding a fairly priced supply, the consumer pays expeditious demands to business owners.

This inflation feedback loop continues to be a staggering puzzle as the Federal Reserve has taken to increasing rates over the past few Federal Open Market Committee (FOMC) meetings. As these rates continue to rise it becomes more expensive to take out debt, but it also becomes more expensive to service old debt. Both of these factors of debt drive down demand due to a lack of liquidity available across the broader market, which in extreme cases can lead to a recession if demand falls off entirely.

In the aforementioned FOMC meeting, Federal Reserve Chairman Jerome Powell said “Hikes will continue to depend on incoming data, but either a 50 basis points or 75 basis points increase seem more likely for the next meeting.”

However, Powell did reiterate that “We’re not trying to induce a recession.”

Feedzy

Recent Posts

Crypto Daybook Americas: It’s Glass Half Full Despite Record Short Bitcoin ETF Volume

By Omkar Godbole (All times ET unless indicated otherwise) You know how it feels when…

3 hours ago

Has Bitcoin Reached Its Cycle Top? Insights From Leading Analysts

Bitcoin experienced extreme volatility yesterday after reaching a new all-time high of $104,088 on Wednesday.…

3 hours ago

Ethereum To Pull A BTC 2021-Like Rally? Analyst Shares Massive Prediction

As Bitcoin finally soars above the long-awaited $100,000 milestone, Ethereum (ETH) attempts to break out…

6 hours ago

U.S. Ether ETFs Post Record Inflows, Bitcoin ETFs Add Most in Two Weeks

Net inflows into U.S. spot ether (<a href="https://www.coindesk.com/price/ethereum/ " target="_blank">ETH</a>) exchange-traded funds (ETFs) have picked…

7 hours ago

Bitcoin Sets New ATH Above $104,000, Yet Investors Don’t Want To Sell

Bitcoin has set a new all-time high (ATH) beyond the $104,000 mark during the past…

7 hours ago

As Bitcoin Trades Above $100K—Analysts Reveal What Could Be Next

Bitcoin has achieved a major milestone, trading at six-figure levels for the first time since…

9 hours ago