As higher-than-anticipated inflation spooks investors, the price of Bitcoin falls more than 8%
Bitcoin, Ethereum, Solana, and other big cryptocurrencies sank sharply over the weekend, as U.S. financial markets saw one of the worst weeks in months.
Bitcoin lost 8.3 percent over the previous 24 hours to US$25,240.08, according to statistics from CoinMarketCap, as higher-than-anticipated inflation prompted market fears about the Federal Reserve moving more aggressively to combat inflation.
This is in light of the fact that the biggest cryptocurrency by market capitalization is progressively associated with equities markets.
The U.S. Bureau of Labor Statistics reported that the 12-month U.S. consumer price index jumped 8.6 percent in May from a year earlier, the largest rise since December 1981 and above the 8.3 percent gain anticipated by Dow Jones analysts.
The S&P 500’s 2.9 percent plunge on Friday was its worst weekly loss since January. The main market index has fallen 18 percent in 2022, marking its worst start to a year since 1962.
The Dow Jones Industrial Average dropped 2.7%, while the Nasdaq plummeted 3.5%. Bitcoin has declined by more than 63.2% from its all-time high of US$68,789.63 on November 10, 2021.
At the time of publication, Ethereum, the second-largest cryptocurrency by market capitalization, was down 8.4 percent to $1,343.50.
Cardano and Solana suffered the most losses among the top ten cryptocurrencies, with Cardano plunging 10.5 percent to US$0.4712 and Solana sliding 12 percent to US$28.58 during the previous 24 hours.
Analysts anticipate a larger-than-anticipated 0.75 percentage point rate hike, predicting that market volatility, including that of cryptocurrencies, would stay high.