Wobbling Again Due to Inflation Concerns…Cryptocurrency 'Collapse'

The price of Bitcoin, the leading cryptocurrency, fell below the $85,000 mark on the 28th (local time). This comes as various indicators suggest that the tariff war initiated by Trump is significantly fueling inflation, slowing down consumption.

According to the U.S. cryptocurrency exchange Coinbase, at 11:28 AM Eastern Time (8:28 AM Pacific Time), the price of one Bitcoin was traded at $84,168. This is down 3.68% from 24 hours ago, with the price that was trading in the $87,000 range the previous day falling below the $85,000 mark.

At the same time, Ethereum and XRP (Ripple), ranked second in market capitalization, fell by 7.11% and 7.53%, respectively, while Solana and Dogecoin fell by 6.94% and 7%, showing a significant decline across major cryptocurrencies.

The weakness in cryptocurrencies today is interpreted as a result of the inflation indicator, which is emphasized by the U.S. central bank, suggesting increased inflationary pressure in February.

The U.S. Department of Commerce announced that the Personal Consumption Expenditures (PCE) price index for February rose 2.5% year-on-year, matching the expert forecasts compiled by Dow Jones. However, the core index, which excludes energy and food and is closely watched by the market, rose 2.8%, exceeding the forecast by 0.1 percentage points.

Concerns are emerging that President Donald Trump's tariff policy is materializing the forecast that it will cause price increases.

The cryptocurrency market is greatly affected by the benchmark interest rate, and rising prices could negatively impact the Federal Reserve's (Fed) monetary policy of two rate cuts within the year.

The nominal personal consumption expenditure for February, also announced today, fell short of expert forecasts, further dampening market sentiment due to concerns about economic slowdown.

Reporter Hyun-Kyung Kim khkkim@wowtv.co.kr