Bitcoin plummets | VTV.VN
According to data on CoinMarketcap, at 13:00 this afternoon (May 12), the price Bitcoin was traded at 26,880.42 USD, down 14.27% in 24 hours, officially dropped from the threshold of 27,000 USD. Market capitalization also fell to more than $513 billion.
Bitcoin’s unstoppable decline sent the market into chaos. The majority of large-cap cryptocurrencies are in free fall. Ether also fell more than 13% to $1,832.33, according to CNBC.
This is the second time this week that Bitcoin is trading below $29,000. Analysts call the $30,000 mark an important milestone for the largest cryptocurrency by market capitalization and suggest that, if Bitcoin fails to hold the mark, the coin will continue to decline.
Previously, on May 11, the price of Bitcoin showed signs of slow recovery after a record drop of only 0.2%, reaching more than $ 30,000.
This time last week, Bitcoin hit $40,000 but then quickly reversed course and repeatedly hit new lows.
Bitcoin Could Drop Deeper
Retail investors are selling off quite a bit of Bitcoin. Illustration.
According to experts, the catastrophic plunge of Bitcoin and the virtual currency market is related to the US announcement of April inflation. The data just released by the US Department of Labor shows the consumer price index (CPI) in April. – a measure of the prices of goods and services, which have increased by 8.3% from a year ago. Core CPI, excluding food and energy prices, rose 6.2%. The pace was 6% higher than forecast, dampening expectations that inflation peaked last month.
Officials U.S. Federal Reserve (Fed) responded to this with two rate hikes this year and pledged to keep increasing until inflation drops to 2%. However, the newly released CPI data shows that the Fed will still have a lot of work to do to achieve this goal.
The fact that the Fed and other central banks raised interest rates in response to inflation suppressed Bitcoin’s bullish momentum. The sell-off of US technology stocks also put more pressure on this currency. The Bitcoin price has dropped by almost 60% from its peak set in November of last year.
Azcoinnews said that short-term investors are inclined to sell, due to uncertainty about the current market price increase. Many investors are concerned that in the near future, there is a risk of Bitcoin falling further. Data at many exchanges shows that retail investors are selling off a lot of Bitcoin and cryptocurrencies after the recent continuous decline.
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