Crypto Extends Tumble Into Weekend After U.S. Inflation Data

Date: 12 June 2022 - 21:52

News ID: ۱۰۳۵۹۲

LONDON (Bloomberg) -

Bitcoin and Ether fell on Sunday amid a broader retreat by the cryptocurrency complex in the wake of data showing U.S. inflation hitting a fresh 40-year high.

Ether declined as much as 5% to $1,445.56, its lowest level since March 2021, while Bitcoin dropped to as low as $27,264.65, its lowest since May 12. Virtually all top tokens tracked by Bloomberg were down Sunday, with the likes of Dogecoin and Avalanche down more than 7% as of 11 a.m. Singapore time.

U.S. inflation data beat expectations, dashing any hope that the price rise has peaked. Stocks sank while two-year Treasury yields rose to the highest level since 2008. Bitcoin and others Cryptocurrencies have suffered in recent months as the Federal Reserve raises rates and global policymakers step up efforts to combat price increases, and risky assets like tech stocks pull back.

U.S. inflation data is helping drive the action lower over the weekend and “we will most likely see this bearish trend continue over the next week, especially with the upcoming FOMC meeting,” Vijay Ayyar said. , vice president of corporate and international development crypto platform Moon.

“If you look at previous bear markets, Bitcoin is down around 80% or more normally, and altcoins are typically down over 90%,” Ayyar said. “If that continues to be the case, we could see much lower Bitcoin prices over the next month or two.”

Total cryptocurrency long liquidations topped $100 million for the third day in a row on Sunday, after $258 million on Friday and $290 million on Saturday, according to data from purse. And the MVIS CryptoCompare Digital Assets 100 Index, a market-cap-weighted measure that tracks the performance of the 100 largest tokens, fell to the lowest level since January 2021.