Inflation takes bite out of cryptos

Inflation takes bite out of cryptos

Bitcoin and other cryptocurrencies continued a wide-ranging decline over the weekend following Friday’s release of the latest inflation data reaching a new 40-year high.

A further decline on Sunday puts bitcoin on a six-day losing streak.

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Bitcoin is trading around $27,000, down more than 4% for the week and nearly 24% for the past 12 months.

Ether also fell on Sunday, declining as much as 5% to around $1,400. Ether is down more than 14% in the past week and more than 35% in a year.

INFLATION HITS FRESH 40-YEAR HIGH IN MAY WITH CONSUMER PRICES SURGING 8.6%

The Labor Department said Friday that the consumer price index, a broad measure of the price for everyday goods, rose 8.6% in May from a year ago. Prices jumped 1% in the one-month period from April. Those figures were both higher than the 8.3% headline figure and 0.7% monthly gain forecast by Refinitiv economists.

Price increases were widespread: Energy prices rose 3.9% in May from the previous month, and are up 34.6% from last year. Gasoline, on average, costs 48.7% more than it did one year ago and 7.8% more than it did in April.

GAS PRICES SET NEW RECORD SUNDAY MORNING

The price of a gallon of regular gasoline hit a historic milestone over the weekend and continues to move higher.

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The price on Sunday morning rose to $5.01, according to AAA.

Gas hit the $5 mark on Saturday morning for the first time ever as part of a record setting run.