Every Top-100 Crypto Is in the Red After Official June Inflation Rate Hits 9.1%
- The U.S. Bureau of Labor Statistics released official data this morning that show June's inflation rate was 9.1% higher than the year before, surpassing estimates of economists and financial experts.
- As a result, the entire cryptocurrency market was down 3% and every digital asset in the top-100 ranking of cryptos by market valuation was down at the time of writing, according to CoinMarketCap.
Consumers and investors likely to experience more money malaise with another record high inflation number.
The official inflation rate for last month has exceeded economic estimates, setting a new record not seen since 1981. This morning, the U.S. Bureau of Labor Statistics announced that the consumer price index -- commonly referred to as the inflation rate -- jumped 9.1% in June compared to June 2021, representing the highest increase in 40 years.
Even though that increase was a surprise, its negative impact on the floundering crypto market is not. At time of writing, the valuation of the entire digital asset class is down more than 3%, while every top-100 crypto is also trading in the red across cryptocurrency exchanges, according to CoinMarketCap. In fact, the most valuable cryptocurrency, Bitcoin, fell more than 4% since the government numbers were issued today.
What it means for consumers -- crypto and otherwise
Undoubtedly, this higher-than-expected surge in the price of everything including food, rent, and gasoline will force the Federal Reserve to continue its aggressive monetary policies. Last month the Fed announced a 0.75% increase in short-term interest rates to try and ground soaring inflation. The Fed also expressed the possibility of another 0.75% increase this month to try and slam the brakes on inflation and slow the descent into a possible recession.
It's worth noting that total trading volume across crypto exchanges is up nearly 14% over the past 24-hour period. That could be a sign of people exiting the crypto market or possibly an indicator of cool-headed investors buying digital currencies on the cheap. Regardless, the current macroeconomic conditions do not hold a lot of positives for everyday citizens trying to make ends meet.
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