Annual inflation in the United States in May rose to 8.6% from 8.3% in April, the highest level since December 1981, CNBC reported, citing the Department of Labor. Against this background, bitcoin price failed at the $30,000 level.

At the time of writing, the initial cryptocurrency is trading around $29,570. According to CoinGecko, the price of the asset has dropped 1.9% in the past day.

After the flagship, Ethereum moved into the red zone. The decline in the last 24 hours was 3.7%. The current price of the cryptocurrency is $ 1722.

US stocks also reacted lower to the news: the S&P 500 fell 2.1%, the Nasdaq Composite 2.75% and the Dow Jones Industrial Average 1.94%.

In March 2022, the US Federal Reserve System (FRS) increased its key rate by 25 basis points for the first time since December 2018. is – up to 0.25-0.5%. Then Bitcoin and the S&P 500 reacted with growth.

Markets were surprised when the Fed increased the interest rate range to 0.75-1% per annum in May. Against this background, the price of the first cryptocurrency has now surpassed the $40,000 level.

Earlier, Arthur Hayes, co-founder of the BitMEX exchange, wanted the first cryptocurrency to drop to $30,000 by the end of the second quarter of 2022, possibly due to the drop in the Nasdaq index.

Recall that Elon Musk announced that he is holding cryptocurrencies in anticipation of increased inflation.