The majority of cryptocurrencies fell by 2% following the news on UK's core CPI rates.
Bitcoin (BTC), along with other leading cryptocurrencies, experienced a significant drop.
The slip, witnessed across major cryptocurrencies, came as a response to unexpected high inflation data from the United Kingdom, unsettling investors in broader equity markets.
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The UK's core Consumer Prices Index (CPI) exhibited an unexpected surge, clocking in at 6.8% - the highest figure since 1992. The predicted figure had been pegged at 6.2%.
This implies an acceleration in the core price gain, which excludes food, energy, and tobacco, from 6.2% in March to 6.8% last month.
As a result of the alarming inflation news, Bitcoin (BTC), a key player in the cryptocurrency arena, slipped below the $27,000 mark, triggering a widespread drop in major cryptocurrencies.
In the last 24 hours, Bitcoin (BTC) has seen a 2% decrease, dipping below the significant resistance level of $27,000. The cryptocurrency king currently retails for $26,720.
Ethereum (ETH) was trading slightly above $1,800, recording an almost 2% decrease in the last 24 hours. The table turned red to nearly all the top 10 cryptocurrencies in terms of market capitalization, including BNB, XRP, Ploygon (MATIC), Solana (SOL), and Lido stETH (STETH).
It is worth noting that UK's inflation data has exceeded expectations for the third consecutive month, pouring cold water on the hopes of economic recovery. The escalating inflation rates are likely to mount further pressure on the Bank of England to persist with hiking interest rates in the near future.
Recently, the news broke that the UK is set to prohibit cold calls promoting financial products like insurance and cryptocurrencies.
As inflation concerns continue to unsettle global markets, the effect on cryptocurrencies underscores their growing connection with traditional economic indicators. This trend is worth watching for crypto enthusiasts and investors alike, as it can provide valuable insights into the increasingly interconnected global financial ecosystem.