[Bitcoin Now] US May CPI Hits Highest in 41 Years, Declines... Investor Sentiment at 'Extreme Fear'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As the US consumer prices in May recorded the largest increase in about 41 years, the price of the leading cryptocurrency Bitcoin is weak.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 3:57 PM on the 11th, the price of Bitcoin was $29,300 (approximately 37.5 million KRW), down 2.64% from the previous day.

The price of Bitcoin is declining as the US Consumer Price Index (CPI) for May rose 8.6% compared to the same period last year. This CPI increase rate is the fastest rise in prices in 41 years since December 1981. Furthermore, it exceeded the 8.5% increase recorded in March as well as the Wall Street Journal (WSJ) experts' forecast of 8.3%. Cryptocurrency specialized media CoinDesk stated, "Generally, investors reduce exposure to risk during inflation periods," and predicted that Bitcoin prices could fall further. Additionally, Katie Stockton, managing partner at investment data analysis firm Fairlead Strategies, analyzed that Bitcoin's medium- to long-term momentum gauge points to a further downward trend.

Following the CPI announcement, the synchronized decline in the US stock market is also interpreted as having affected Bitcoin prices. On the 10th (local time), the Nasdaq index, centered on technology stocks, closed at 11,340.02, down 414.20 points (3.52%). The Dow Jones Industrial Average on the New York Stock Exchange (NYSE) closed at 31,392.79, down 880.00 points (2.73%) from the previous session.

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which expresses investment sentiment toward cryptocurrencies as an index, fell by 1 point from the previous day to 12 points (extreme fear). Alternative's Fear & Greed Index means that the closer to 0 points, the more pessimistic fear investors feel about investment, and the closer to 100 points, the more optimistic they are.

This content was produced with the assistance of AI translation services.