Bitcoin has fallen below $ 29,000 as the recent cryptocurrency sell-off continues.

The last time the price of bitcoin fell by 2.42% to $ 28,716.15 at 23:44 ET on Wednesday, according to Coin Metrics. Ether fell 4.93% to $ 2,021.95.

Cryptocurrencies fell shares after the Bureau of Labor Statistics announced that consumer prices for April jumped by 8.3%, which is slightly higher than expected by economists polled by Dow Jones.

This frightened investors, forcing them to exit risky assets, including crypto. Cryptocurrencies remain strongly associated with the S&P 500 and, more recently, the Nasdaq Composite.

“The cryptocurrency market has been under pressure for some time,” said Michael Rinko, a risk officer at AscendEx. “The Federal Reserve continues to rise, so stocks continue to fall and cryptocurrencies continue to fall. In general, this creates a lot of fear in the market. “

This is the second time Bitcoin has fallen to $ 29,000 this week. Analysts have called $ 30,000 a key level for the largest cryptocurrency by market capitalization and said it could fall even more if it can’t stay there.

At the time, Bitcoin reached a recent $ 40,000 peak last week, but quickly turned around the next day, steadily reaching new lows ever since.

Investors are also learning big news from the Terra project, whose suddenly popular stable coin TerraUSD collapsed almost 100% at one point last week, violating its $ 1 fixed value. The decentralized, algorithmic stablecoin is designed to be supported by a combination of digital assets, including bitcoin.

https://www.cnbc.com/2022/05/11/bitcoin-drops-below-30000-as-hot-inflation-report-causes-investors-to-shun-risky-assets.html

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