Tag: consumer price index

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Bitcoin Crypto News Economics Markets

Bitcoin Sinks Below $29k, its Lowest Level Since 2020

Bitcoin has continued its dramatic descent, falling below US$29,000 to its lowest point since December 2020. It’s currently hovering around that $29,000k support level, with everyone wondering which way it’s going next.

BTC/AUD price chart. Source: CoinMarketCap

The US Consumer Price Index (CPI) figures were published on May 11 and the knock-on effect saw Bitcoin piercing the $30,000 support at US$28,170. April’s annual CPI figure is 8.3 percent, down 0.2 percent from the previous month, yet the update sent Bitcoin into a frenzy, its price falling from US$31,700 to $28,170 in as little as 20 minutes, followed closely by a rebound to approximately $31,600:

When In Doubt, Zoom Out

It’s easy to focus on the current dip in price, but if we zoom out further on the timeline we can see the trajectory is still moving upwards overall.

Source: Twitter
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Australia Economics

Australian Consumer Price Inflation Records Largest Annual Increase Since 2000

Australia has this week recorded its largest quarterly and annual inflation increase since 2000. The ABS has released data stating the consumer price index has risen 5.1 percent on a yearly basis and 2.1 percent in the first quarter of 2022.

Life Keeps Giving Lemons

Australia’s new inflation rate exceeds the 5 percent mark registered in 2008, which accompanied the global financial crisis. It’s also the highest quarterly and annual rate since the 6.1 percent rate that marked the introduction of the goods and services tax (GST) in 2000.

The latest rise has been larger than originally anticipated, leaving many wondering whether the Reserve Bank of Australia (RBA) will have no choice but to increase official interest rates as a counter:

Inflation Rates Rise Globally

Naturally, inflation isn’t exclusive to Australia and can be cryptocurrency-related. In July 2021, Aussie inflation rose by 3.8 percent, aided by Bitcoin’s return from its low point. At the time it was believed that the increase would be temporary, resulting from several one-offs.

And in the US, inflation hit a 40-year high last month, rising to 7.9 percent. Almost all costs of living are up, including gas, fuel, housing and food prices, as Russia’s conflict with Ukraine intensifies.