Bitcoin is down sharply, falling below $ 27,000 for a moment, as the cryptocurrency sell-off continues.
In particular, according to investing.com, Bitcoin is losing 13.78% in the last 24 hours and is moving at $ 27,217.8. Earlier it “reached” $ 26,861.9. Alongside, Ethereum is slipping 22.86% in the last 24 hours and trades at $ 1,850.95.
Cryptocurrencies widened their losses yesterday in the wake of yesterday’s data showing that inflation in the US exceeded analysts’ estimates. In particular, the consumer price index rose in April by 0.3% from the previous month and by 8.3% on an annual basis, as announced by the US Department of Labor. The monthly change, however, was the smallest since last August.
This frightened investors, leading them to exit risky assets, including cryptocurrencies. Cryptocurrencies continue to be highly correlated with the S&P 500 and, more recently, the Nasdaq.
“The cryptocurrency market has been under pressure for some time,” said Michael Rinko, an associate at AscendEx. “The Fed continues to raise interest rates, so stocks continue to fall and cryptocurrencies continue to fall. In general, this has created great market fear,” he added.
Analysts have cited $ 30,000 as the key level for the most popular cryptocurrency and have stressed that it could fall even further if it can not be maintained at this level.
Last week Bitcoin had “reached” $ 40,000, but quickly returned to losses the next day and has since hit steady new lows.
Meanwhile, investors are watching the course of the stablecoin TerraUSD of the Terra project, which continues to move in the “red”.
Specifically the TerraUSDthe so-called stablecoin, which aimed to stay firmly tied at $ 1, is down 16.29% in the last 24 hours and is moving at $ 0.6.
The other currency Iunahas fallen 96.65% in the last 24 hours and is moving at $ 0.28.
Stablecoins are in the crypto-economy, similar to bank accounts, offering a healthy repository of securities to avoid volatility in cryptocurrencies such as Bitcoin, for which they have become infamous – at least in theory.
UST is known as a stablecoin algorithm. Recently, its price has collapsed under selloff pressure on cryptocurrencies, leading to panic in the market.
Source: Capital
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