Bitcoin price falls under $29.5K after 'unexpected' 40-year high US inflation

cointelegraph.com:

Bitcoin (BTC) fell sharply on June 10 after surprisingly high inflation data from the United States rattled markets before the Wall Street open.

Data from Cointelegraph Markets Pro and TradingView tracked a $600 dive for BTC/USD as May's Consumer Price Index (CPI) figures hit.

Despite hopes that the worst of the inflationary period was over, May's CPI print came in at 1% month-on-month and 8.6% year-on-year — a return to levels not seen since 1981. Estimates had only forecast around half as much of a jump for last month.

Bitcoin immediately felt the pinch as the market appeared to balk at the prospect of further monetary tightening to tame increasingly aggressive price increases.

According to Bloomberg, traders were now pricing in three 50-basis-point key interest rate hikes from the U.S. Federal Reserve in June, July and September, respectively.

Hotter-than expected US #inflation boosts chances for more Fed hikes. Trader now prices in 3 half-point rate hikes and and two more small steps. Now a key interest rate of almost 3% at the end of the year is priced in. pic.twitter.com/RYUPgK1qbt

Reacting, Bitcoin traders were keen to see how various points inside the current narrow trading range would fare should volatility continue. For Cointelegraph contributor Michaël van de Poppe, the key area was around $29,300.

"Let's see how Bitcoin is reacting at this level of support," he told Twitter followers after the CPI event.

Popular commentator WhalePanda meanwhile cautioned panicking investors over rethinking their BTC allocation due to macro circumstances.

"Dumping your Bitcoin because inflation is higher than expected is one of the dumbest things you could ever do," he wrote.

The U.S. announced that the annual rate of unseasonably