Cryptocurrencies are facing a declining market outlook as USD inflation data fuel losses in the prices of digital currencies. Bitcoin, Ethereum and other major cryptocurrencies have seen steep losses in value over the past week according to CoinMarketCap.com. The price of bitcoin has lost 27% of its value since January 1st, 2019 while Ethereum has fallen by 36%.
The reason for this decline is that USD inflation data released by the Federal Reserve showed that prices are rising faster than wages which decreases the purchasing power of people who use fiat currencies like USD. Bitcoin and Ethereum have seen the largest losses in value with Bitcoin falling by 27% and Ethereum down by 36 %.
Cryptocurrencies are facing a declining market outlook as USD inflation data fuel losses in the price of Bitcoin and other digital assets. The Consumer Price Index (CPI) for the month of April showed that the U.S. dollar had an annualized inflation rate of 2.5%, which is higher than the March CPI rate of 2.1%. This increase in the CPI has caused investors to sell their digital assets, resulting in a decline in prices across all cryptocurrencies. In addition, concerns about a possible trade war between the United States and China have also contributed to the overall decline in cryptocurrency prices.
