Bitcoin, cryptocurrency back in red as UK inflation rises
James Dewar suggests that there are two parts to inflation
Modified Date:- Published Date:-Categories: Cryptocurrency
Bitcoin fell below the US$20,000 for the third time in a week on Thursday morning, as news of record inflation in the UK and warnings of a recession in the crypto markets came. According to CoinMarketCap, bitcoin was trading down 3.5% over the past 24 hours, but recovered slightly at $20,045 at press time. Ethereum fell 6.52% to US$1,051 at press time, while all non-stablecoin tokens were down in the crypto top 10. Recent data from the UK shows inflation is running at a 40-year high of 9.1%, and is expected to reach 11% in the UK in October as central banks begin to raise interest rates to combat rising inflation. Let's say, the likelihood of a global recession has increased to 50%, according to Citigroup Inc. The crypto market cap is down more than 70% from its all-time high in November, as rising inflation rates and rising fears of a recession have prompted investors to pull out money from riskier assets. Bitcoin's downtrend is not dragging the entire cryptocurrency market down as it did in recent days, with Polygon's MATIC up 14% and Uniswap's UNI up 9%.
The UK cryptocurrency market has been in the red since Wednesday last week, with bitcoin falling below key support levels and a general reaction to ongoing developments in the Korean market.