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Bitcoin Dives Below 30K, Major Indices & Oils Fall

The consensus of economic analysts, inflation, rising Covid-19 outbreaks, and exorbitant consumer price figures seem to point to the start of a possible economic slowdown. As a result, falls in oil, bitcoin, indices, and 10-year US Treasury bonds have been triggered.

June’s inflation figure came in at 5.4%, the highest rate since 2008. Travel, restaurant, and auto prices soared in June. At the same time, the Delta variant of the Covid-19 virus has triggered a new wave of infections worldwide. Taking into consideration these factors, investors believe that the economy may be reaching a slowdown point.

Last week, yields on 10-year Treasury bonds reached 1.05%, their lowest level since February. In addition, US oil prices have fallen 7.5% to $66.42 per barrel, their lowest level since September last year.

On Monday, the Dow Jones experienced a drop of 725.81 points recording a decline of 2.1%, its worst fall since October. The S&P 500 was down 1.6% at 4,258 points. The Nasdaq fell 1.1% and continued its fifth consecutive day of losses.

Bitcoin Below 30K

This morning, during Tokyo´s session, Bitcoin continued its losses and was down as much as 4.1%. It is hovering around $29,600, at the time of writing. Its digital asset peers accompanied the major cryptocurrency’s fall.

Bitcoin’s recent falls come at a time of fear for a possible economic stagnation and a time when global equities have entered a downturn. According to financial news website Bloomberg, some traders had viewed the 30k Bitcoin figure as key support and, if broken, it could open the way for further losses.

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