In the aftermath of data showing US inflation hitting a new 40-year high, Bitcoin and Ether plummeted on Sunday, joining a broader cryptocurrency sell-off, as investors went on risk-off mode.
Ether fell as much as 5% to $1,440, its lowest level since March 2021, while Bitcoin fell as low as $27.3K, its lowest level since May 12.
Many crypto assets are also in the red, including Cardano, OMG, XRP, and Avalanche.
What you should know
- Bitcoin and other cryptocurrencies have suffered in recent months as the Federal Reserve raises interest rates and global policymakers intensify measures to counteract price rises, as well as risk assets such as tech stocks have declined.
- Last week, the flagship cryptocurrency began to lose value steadily after a few briefs and fruitless bids to go through $32K. The most recent rejection at that level dropped the asset to $30K, where it remained for a few days.
- When the US inflation data were released on Friday, the picture changed (8.6%) Bitcoin’s volatility increased as a result of the 40-year record, with the price dropping to $29K
- Nonetheless, the worst was yet to come, as the pioneer crypto-asset began to sink even faster hours later. This came to a head earlier today when BTC fell to $27,200 (on the FTX exchange), the lowest price in a month.
- According to Coinglass data, total long crypto liquidations were above $100 million for the third day in a row on Sunday, after $258 million on Friday and $290 million on Saturday.