Bitcoin is below $22,000 again! Why did the decline begin?

Bitcoin, the cryptocurrency market leader, erased its recent gains. Thus, it fell below the $ 22,000 level once again.

The price of Bitcoin, the world's largest cryptocurrency, fell sharply on the back of a worse-than-expected US inflation report. BTC lost 4.7% of its value in just a few minutes. Major altcoins, including Ethereum, Cardano and Dogecoin, also lost value, following the market leader's move. The latest inflation data made things difficult for those expecting a rebound in September. The cryptocurrency's price action is still driven by macroeconomic factors. That's why it fell sharply along with US stocks.

Will the decline continue?

In August, Bitcoin rallied along with stocks due to July inflation data that came in differently than expected. The new CPI data will likely prompt policymakers at the US Federal Reserve to adopt a more aggressive monetary policy. Therefore, there is no relief in sight for risky assets. The market currently has a 19% chance of a 19% rise with a massive 100 basis point hike in September. The consensus, however, is that the Fed will settle for another 75 basis points. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!