Bitcoin price hits 7-day low as US warns of 'very high' CPI data

Crypto market jitters over inflation spread with Bitcoin and Ethereum falling to levels not seen since last week .

Market Update

Bitcoin (BTC) followed through on threats of new local lows on July 12 as the White House warned of “very high” inflation.

BTC/USD 1-Hour Candle Chart ( Bitstamp). Source: TradingView

White House warns ahead of 'decisive day'

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD approaching $19,500 ahead of the Wall Street open, down more than 4% on the day.

Failing to hold support at $20,300, the pair seemed to react badly to comments on the inflation outlook from White House press secretary Karine Jean-Pierre.

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Markets were already poised for higher-than-expected June numbers from the Consumer Price Index (CPI), which hit new 40-year highs in May.

“So on Wednesday we will have new data on CPI inflation, and we expect the overall figure, which includes gasoline and food, to be very high, mainly because the gasoline prices were so high in June,” she told reporters during a July 11 press briefing.

The trip to $19,520 meanwhile marked Bitcoin's lowest levels in a week.

"Tomorrow will be decisive", Michaël van de Poppe, contributor to Cointelegraph