Musk announced that buy Tesla can not use cryptocurrency Bitcoin fell sharply by 10%

The dollar rose against the G-10 currency and the 10-year U.S. bond yield also rose sharply as the U.S. consumer price index rose the most since 2008 in April and exceeded expectations, leaving markets betting that the Federal Reserve Board (Fed) may be forced to raise interest rates earlier. Cryptocurrency bitcoin fell 10% as Tesla CEO Musk announced he was suspending payments in bitcoin.

The dollar index rose 0.7% to 90.77 on the 12th.

The euro depreciated 0.63% against the dollar to $1.2072 on the 12th, while the yen depreciated 0.97% against the dollar to 109.97 and the pound depreciated 0.6% to $1.4054.

Rising prices usually make the dollar stronger, because the market believes that the Federal Reserve will raise interest rates to curb inflation. But the foreign exchange market reacted with considerable restraint, as Federal Reserve Chairman Ball promised to keep interest rates stable while allowing inflation to move higher for a period of time.

Federal Reserve Board Vice Chairman Richard Clarida downplayed the news of rising inflation, saying it was largely caused by temporary forces.

A report from Capitol Macro economists noted, “The dollar will strengthen further against most other currencies as massive fiscal support measures support the U.S. economy more than other countries, and U.S. bond yield rises more than other countries’ public debt.”

The Australian and New Zealand dollars fell the most among G-10 currencies as overall risk aversion overshadowed the impact of the commodity market boom.

In the digital currency space, bitcoin fell 10 percent to $50,931.71 after Tesla CEO Musk announced he had suspended accepting payments in bitcoin for Tesla cars, citing concerns about “rapidly increasing use of fossil fuels” for bitcoin mining activities.

Ethereum fell 4.4 percent to $3,972.53, retreating from an earlier record level of $4,380.64.