The USA reports an 8.3% rise in the CPI, and meanwhile, Bitcoin dumps below $21k within a short time. The crypto market shows red signs as Bitcoin takes altcoins down with the drop.
Bitcoin Dumps Below $21k Price Level
Bitcoin rallied up for a couple of days after seeing a below $19k price level. It almost hit $23k with a 13% increase in the price. However, the ride did not take too long and today Bitcoin price has dropped below $21k with a 5% drop in price.
Cryptocurrency with the most market cap was expected to increase above $23k in the successful uprise, but the highest price that BTC reached was around $22.7k. According to TradingView, currently, Bitcoin is 6.7% down in 24 hours. It coincided with the inflation rate report in the USA.
Bitcoin price was wandering around $20,890 at the time of writing. Currently, Bitcoin is the 2nd most traded cryptocurrency in the crypto market following the USDT- the stable cryptocurrency. The trading volume of BTC is $50 billion whereas USDT accounts for a $71 billion volume in the crypto market.
Anyone can buy USDT in Dubai and sell USDT in Dubai within a few minutes.
Market capitalization also got hurt by the price drop. At the time of writing the market cap of Bitcoin was $400 billion drop from $425 billion.
The United States Reports An 8.3% Increase In CPI
Bitcoin’s instant dump coincided with today’s report by the U.S. Bureau of Labor Statistics. A short period after the release of the report, the market price of Bitcoin and altcoins declined to lower price levels.
According to the labor statistics bureau, the consumer price index which is used as the indicator for inflation rose by 8.3% in the USA. It is a 0.1% increase in comparison to July’s stats. The inflation rates of the last couple of months are the highest numbers in 40 years.
OpenNode to Test Bitcoin Payments in Bahrain
OpenNode intends to test out the bitcoin payment processing and payouts solution via the Central Bank of Bahrain (“CBB’s”) Regulatory Sandbox. This will be one of the first attempts to use cryptocurrencies namely Bitcoin in the country. The company intends to provide infrastructure to help the country to grow its economy.
The CEO and Co-Founder at OpenNode, Afnan Rahman: “This is a watershed moment for the people of Bahrain, the Middle East, and the Bitcoin economy as a whole. OpenNode’s leading Bitcoin infrastructure solution continues to pave the way for countries, governments, and reputable financial institutions to adopt the Bitcoin standard and transact on the lightning network.”
Executive director at Bahrain Economic Development Board, Dalal Buhejji, said:
“We are proud to have worked with the Central Bank towards establishing a strong financial services ecosystem within the Kingdom of Bahrain. As a country, we have always been ahead of the curve in adopting Fintech solutions, thanks to our regulator’s flexibility and forward thinking.
Rise in Hashrate and Number of Transaction
According to Coin Metrics, the hash rate of Bitcoin has recorded all-time high levels. While the price of bitcoin is low, the challenging environment may deter miners to mine bitcoin. The monetary profitability is the key factor that determines whether miners will stay as a bitcoin node or not.
Bitcoin hit an all-time high hash rate difficulty at 32.05 trillion. Even though the price of bitcoin has fallen down, the mining difficulty continued to rise.
Meanwhile the number of transactions that Bitcoin has hit its three-month high of 10,858. The previous 3-month high of 10,852 was observed on 18 June.