The world’s largest cryptocurrency Bitcoin is now at its lowest level in 18 months. According to Bloomberg, its value has fallen by 12% to $23,981. Such has not been seen on the market since December 2021. The fall has caused shocking data on the inflation in the United States, published on Friday, which continue to affect risky assets.
Other cryptocurrencies also fell in price and suffered more than Bitcoin. Ethereum has fallen by 20% to its lowest level since January 2021. Avalanche fell 20%, Solana 19% and Dogecoin 20%.
The MVIS CryptoCompare Digital Assets 100, which measures the 100 most popular tokens, fell 14%. According to CoinGecko, the total market capitalization of cryptocurrencies, which exceeded $3 trillion in November, was $1.02 trillion as of 5 a.m. Monday, New York time. According to one expert, this is the first time that cryptocurrencies have encountered this type of macro-environment.
Traders are raising rates in response to data that US inflation reached a 40-year peak in May. Cryptocurrencies, which had already had problems the day before due to the policy of the Federal Reserve System, were particularly affected. The collapse of the Terra/Luna ecosystem and the suspension of withdrawals by creditor Celsius have further undermined the credibility of the cryptocurrency space.