Crypto market faces downside pressure as inflation fears and rising oil prices bite

(Kitco News) - The price action in the crypto market was flat on Wednesday as concerns related to inflation are once again on the rise, partly due to the fact that WTI crude oil is trading near its highest price since November. Rising oil and gas prices have historically put positive pressure on the price of everyday items, leading many analysts to warn that consumers could soon be squeezed even more than they already are.

Stocks traded lower for a second day as persistent concerns about inflation have led many to assume that the Federal Reserve will not be able to lower interest rates anytime soon, and may have to continue to raise rates to achieve their 2% inflation target.

At the market close, the S&P, Dow, and Nasdaq finished in the red, down 0.70%, 0.57%, and 1.06%, respectively.

Data provided by TradingView shows that volatility spiked for Bitcoin (BTC) as its price peaked above $26,000 in the afternoon, only to reverse course and fall to $25,360 before ultimately returning to support at $25,700, leaving its price relatively unchanged on the 24-hour chart.