Bitcoin and Ether fell today amid a wider decline in cryptocurrencies in the wake of data showing that US inflation has reached a new 40-year high, according to Bloomberg.
Ether fell as much as 5% to $ 1,445.56 (currently moving up to $ 1,456), the lowest level since March 2021, while Bitcoin fell to $ 27,264.65 (currently moving up to $ 27,467 ), the lowest level since 12 May. Almost all of the top tokens monitored by Bloomberg fell on Sunday, with Dogecoin and Avalanche down more than 7%.
US inflation data on Friday exceeded expectations, dispelling any hope that the rise in prices may have peaked.
Shares plunged as two-year government bond yields climbed to their highest level since 2008. Bitcoin and other cryptocurrencies have come under strong pressure in recent months as the US Federal Reserve raises interest rates.
US inflation data help fuel the downturn until the weekend and “it is very likely that we will see this downward trend continue next week, especially with the forthcoming FOMC meeting,” said Vijay Ayyar, vice president corporate development and international on the Luno encryption platform.
“Looking at previous declining markets, Bitcoin has fallen around 80% and more normally, with altcoins usually making more than 90%,” said Vijay Ayyar, an executive at the Luno platform. “If this remains the case, we could see much lower prices for Bitcoin over the next month or two months.”
Total long-term liquidity for cryptocurrencies was over $ 100 million for the third consecutive day on Sunday, after $ 258 million on Friday and $ 290 million on Saturday, according to Coinglass.
The MVIS CryptoCompare Digital Assets 100 index, which is weighted based on market capitalization tracking the performance of the 100 largest tokens, fell to its lowest level since January 2021.
Source: Capital
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