Bitcoin briefly slipped below $19,000 on major crypto exchanges following the release of the U.S. consumer price index (CPI), which came in higher than economists' estimates.
The U.S. economy recorded 9.1% inflation
in June from the year-earlier month, which is a 40-year high. The gauge increased 1.3% from a month earlier, the steepest month-on-month increase since 2005, reflecting higher gasoline, groceries, rent and dental care.
A sell-off in crypto assets followed the release. According to CoinGecko data, many of the 100 largest cryptocurrencies by market capitalization fell at least 4%. Overall, crypto market capitalization fell 2.5% in the 24 hours, with the bulk of losses coming over a few hours after the report release. The next day, prices of the most influential cryptocurrencies slowly started climbing back.