Every top 100 encryption is in the red after the official inflation rate in June reached 9.1%

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Consumers and investors are likely to experience more money difficulties with another record high inflation rate.

Important points

• The US Bureau of Labor Statistics released official data this morning which shows that June’s inflation rate was 9.1% higher than the year before, and exceeds estimates from economists and financial experts.
• As a result, the entire cryptocurrency market was down 3%, and all digital assets in the top 100 ranking of cryptocurrencies by market value were down at the time of writing, according to CoinMarketCap.

The official inflation rate for last month has surpassed economic estimates, setting a new record not seen since 1981. This morning, the US Bureau of Labor Statistics announced that the consumer price index – often referred to as the inflation rate – jumped by 9.1% in June compared to June 2021, which represents the highest increase in 40 years.

Although this increase was a surprise, its negative impact on the fluctuating crypto market is not. At the time of writing, the valuation of the entire digital asset class is down more than 3%, while each top-100 crypto is also traded in the red across cryptocurrency exchanges, according to CoinMarketCap. In fact, the most valuable cryptocurrency, Bitcoin, has fallen more than 4% since government figures were released today.

What it means for consumers – crypto and more

Undoubtedly, this higher-than-expected increase in the price of everything, including food, rent and petrol, will force the Federal Reserve to continue its aggressive monetary policy. Last month, the Fed announced a 0.75% increase in short-term interest rates to try to keep inflation right. The Fed also expressed the possibility of a further 0.75% increase this month to try to curb inflation and slow the decline to a possible recession.

It is worth noting that the total trading volume across crypto exchanges has increased by almost 14% during the last 24-hour period. It could be a sign that people are leaving the crypto market or possibly an indicator that cool investors are buying digital currencies cheaply. In any case, the current macroeconomic conditions do not have much positive for ordinary citizens who are trying to make ends meet.