Bitcoin continued to lose value and fell below $27,000 due to the sale of cryptocurrencies by investors. Bitcoin fell 8.67% to $26,848.20 on Thursday, according to Coin Metrics. Ethereum fell more than 13% to $1,832.33.
Cryptocurrencies collapsed along with stocks after the US Bureau of Labor Statistics reported an 8.3% rise in consumer prices in April.
This was more than economists expected, and frightened investors who began to avoid risky assets, including cryptocurrencies. As before, the crypt strongly correlates with the S&P 500 stock index, and more recently with the Nasdaq Composite.
“The crypto market has been under pressure for some time. As the Fed continues to hike, stocks continue to fall and cryptocurrencies fall accordingly. In general, it has created a lot of fear in the market,” said Michael Rinko, Associate of AscendEx.
Bitcoin is falling below $29,000 for the second time this week. Analysts called the $30,000 key for the largest cryptocurrency and noted that it could fall even more if it does not hold.