Bitcoin (BTC) Price Plummets 10% Following Sharp Decline on Wall Street

• The Bank of England issued a warning on inflation on Thursday.
• 97% of the firms included in this S&P 500 were losing money.

Coincident with the sharp decline on Wall Street, Bitcoin’s price fell to its lowest level in more than two months. As per CMC data, BTC prices fell from $38,800 to $36,300, down almost 10% in the last 24 hours, indicating that the world’s most valuable cryptocurrency has fallen drastically in only three hours.

Rising Inflation Around the Globe

In the immediate wake of the Federal Reserve’s announcement that the U.S. benchmark interest rate will rise by half a percentage point, BTC saw a steep drop in value. Bitcoin struggled to break beyond the $40,000 barrier, as seen by the recent market turbulence. As the stock market in New York took a beating on Thursday afternoon, Bitcoin’s price continues to move in lockstep with it.

As of Thursday, the S&P 500 was on the verge of experiencing its worst trading day since June 2020 after Wednesday’s record-breaking one-day rally. According to Bloomberg statistics, 97% of the firms included in this index were losing money. Economic experts had predicted that the current cost-of-living problem would be short-lived, but now they are worried that central banks throughout the globe may struggle to keep inflation under control.

The Bank of England issued a warning on inflation on Thursday, predicting that it would climb throughout the year and reach as high as 10%, putting further pressure on households. According to economists in major countries, a recession may be verified when a country’s GDP decreases for two consecutive quarters.

Jerome Powell’s statement that the Federal Reserve was not contemplating an interest rate rise of 0.75 percent in the short term initially brought comfort to the markets. Still, he also hinted that there would be another 0.5 percentage points of interest rate hikes in June and July.