Cryptocurrencies, Bitcoin Return To Red Amid Rising UK Inflation

Bitcoin dipped below US$20,000 for the third time in a week on Thursday morning in Asia after news of record inflation in the U.K. and fears of a recession slammed crypto markets.

According to CoinMarketCap, Bitcoin was trading down 3.5% in the last 24 hours but somewhat rallied to US$20,045 at the time of writing.

Bitcoin (BTC) price chart. Source: TradingView

Ethereum dropped 6.52% to change hands at US$1,051 at press time, while all non-stablecoin tokens in the crypto top 10 were down.

Bitcoin (ETH) price chart. Source: TradingView

Recent data shows inflation is running at a 40-year high of 9.1% and is predicted to exceed 11% in October in the U.K.

As central banks continue to boost interest rates to battle growing inflation, the chance of a worldwide recession has increased to 50%.

The crypto market value is down over 70% from its all-time high in November when growing inflation rates and worries of recession have made investors move their money out of risk assets.

Bitcoin’s downtrend is not pushing down the whole cryptocurrency market as it has recently been, with Polygon’s MATIC jumping 14 per cent and Uniswap’s UNI gaining by 9%.