Bitcoin, ether and dogecoin briefly slide to lowest in 3 weeks after inflation data sparks fears of faster Fed tightening

Bitcoin, ether and dogecoin briefly slide to lowest in 3 weeks after inflation data sparks fears of faster Fed tightening

Bitcoin dogecoin and cardano's ada token hit their lowest in three weeks at one point on Wednesday before recovering some stability, while ether touched a two-week low after a key measure of US inflation raised concern among investors that the Federal Reserve may put an end to its current policy of low borrowing costs. The US consumer price index rose 5.4% in June compared with a year earlier, the fastest since 2008, according to data on Tuesday. Bitcoin was last up around 1% on the day at $32,830, according to Bloomberg . Earlier, it fell to as little as $31,599, its lowest in three weeks. "The strange narrative is that this is due to the strong inflation yesterday in the US, perhaps on the fear that this will bring forward Fed tightening measures although, we do also have the ongoing backdrop of a Chinese on mining," Saxo Bank chief investment officer Steen Jakobsen said. Fed fund futures, which track short-term interest rate expectations, suggested traders are betting on the Fed raising interest rates by late 2022, if inflation persists, reported. This could affect cryptocurrencies, which have profited from over a year of ultra-cheap money that has sent investors searching high