Every Top-100 Crypto Is in the Red After Official June Inflation Rate Hits 9.1%

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.