Bitcoin crash ahead? Expert warns higher inflation could whip BTC price to $30K

Bitcoin crash ahead? Expert warns higher inflation could whip BTC price to $30K


Bitcoin (BTC) may end up falling to as low as $30,000 if the U.S. inflation data to be released on Wednesday comes any higher than forecasted, warns Alex Krüger, founder of Aike Capital, a New York-based asset management firm.

The market expects the widely-followed consumer price index (CPI) to rise 7.1% for the year through December and 0.4% month-over-month. This surge highlights why the U.S. Federal Reserve officials have been rooting for a faster normalization of their monetary policy than anticipated earlier.

U.S. headline inflation. Source: Bureau of Labor Statistics, Bloomberg

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Further supporting their preparation is a normalizing labor market, including a rise in income and falling unemployment claims, according to data released on Jan. 7.

“Crypto assets are at the furthest end of the risk curve,” tweeted Krüger

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