Bitcoin slips below $29,000 as crypto sell-off continues

Bitcoin dropped below the $29,000 level as a recent sell-off in the cryptocurrency space continues.

The price of bitcoin was last down 2.42% to $28,716.15 as of 11:44 p.m. ET Wednesday, according to data from Coin Metrics. Ether fell 4.93% to $2,021.95.

Cryptocurrencies fell with stocks after the Bureau of Labor Statistics reported consumer prices for the month of April jumped 8.3%, which was slightly higher than expected by economists polled by Dow Jones.

That spooked investors, leading them to exit risk assets including crypto. Cryptocurrencies remain highly correlated with the S&P 500 and, more recently, the Nasdaq Composite.

“The crypto market has been under pressure for some time now,” said Michael Rinko, venture associate at AscendEx. “The Fed keeps hiking, so equities keep going down and crypto’s been going down along with it. Generally that’s created a lot of fear in the market.”

This is the second time this week bitcoin has fallen into the $29,000 range. Analysts have called $30,000 a key level for the largest cryptocurrency by market cap, and said it could fall even further if it can’t hold there.

This time last week bitcoin touched a recent high of $40,000 but quickly reversed the next day and has been steadily hitting new lows since.

Investors also digesting big news from the Terra project, whose suddenly popular stablecoin TerraUSD crashed almost 100% at one point in the past week, breaking its $1 peg. The decentralized, algorithmic stablecoin is meant to be backed by a combination of digital assets, including bitcoin.

Speak Your Mind

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Get in Touch

350FansLike
100FollowersFollow
281FollowersFollow
150FollowersFollow

Recommend for You

Oh hi there 👋
It’s nice to meet you.

Subscribe and receive our weekly newsletter packed with awesome articles that really matters to you!

We don’t spam! Read our privacy policy for more info.

You might also like

Microsoft undercuts MacBook Air with new $549 laptop

Microsoft Surface Laptop GoMicrosoftMicrosoft on Thursday announced a new affordable laptop, the Surface Laptop...

Airtel, Vodafone-Idea’s Prepaid, Postpaid Plans May Cost More From...

Bharti Airtel and Vodafone-Idea are reportedly considering a new round of tariff hikes as...

Facebook Launches Its Free-to-Play Cloud Gaming Service for Android...

Facebook has become the latest tech giant to enter the world of cloud gaming;...