BTC Price Dips as Inflation Surges, Mining Machines Near Shutdown
2022.06.13 12:06
BTC Price Dips as Inflation Surges, Mining Machines Near Shutdown
- BTC price fell to $25,616.90, as the global crypto market tumbled.
- High inflation rate is the cause for the BTC downswing.
- Also, old mining machines are near shutdown price following BTC price fall.
Pushing more into the downswing, the fall of the global crypto market cap has again resulted in a BTC price shed at $25,616.9. To begin, the market cap is registered at $1.04 trillion, which is a 4.87% dip.
Along with the BTC crash, almost all the major coins, except MANA (5.45%), ICP (2.78%), and NEO (5.08%), currently show a red signal. BTC price fall indicates how the coin could not tap at a higher price, after the recent $30,000 tag. Furthermore, the current coin price is also approximately equal to the price hit in the first week of May, when BTC was trading between $20,000 and $25,000.
In detail, the reason for the crypto market plunge is reportedly due to the high inflation rate, which is now at its peak since 1981. According to the US Bureau of Labor Statistics, the Consumer Price Index for All Urban Consumers (CPI-U) increased by 1% in May on a seasonally adjusted basis following the 0.3% rise in April. Also, there has been an 8.6% increase in the all items index in the last 12 months.
Since the inflation rate hit the stock market, it directly affected the crypto market to tumble down. Moreover, BTC has not yet overtaken the $50,000 price tag it had in December 2021. By then, the coin price was in a downtrend, with frequent upticks that hovered below $50,000.
Consequently, as reported by F2Pool, the BTC price dip resulted in old mining machines like Avalon A9 and S11 moving toward price shutdown. But, mainstream mining machines such as S19 M30 are still far from the shutdown price. This depicts that the BTC network is becoming unprofitable for some miners, at the moment.
However, Ethereum’s price also melted down to $1,336.6, a dip of 7.44%. This price is an 18-month low for the token. Also, coins like XRP (-3.13%), SOL (-9.2%), and DOT (6.1%) fell off the cliff.
Continue reading on CoinQuora
