Bitcoin plummeted, struggling around the threshold of $28,000

According to data from Coin Metrics, the price of Bitcoin at noon on May 12 dropped to $ 26,350.49, the lowest value recorded for the day. Market capitalization also fell to about $501 billion during the same period. Latest update from CoinMarketcap at 19 pm 12.05 shows, the price of the most famous cryptocurrency world is trading around 28,000 USD.

The crypto market has been under pressure for a considerable time Reuters

According to CNBC, the value of cryptocurrencies fell along with equities after the U.S. Bureau of Labor Statistics reported that consumer prices for April 2022 rose 8.3%, slightly higher than economists expected. economy polled by Dow Jones. This situation has scared investors and forced them to exit risky assets such as electronic money.

“The crypto market has been under pressure for a considerable time. The US Federal Reserve (Fed) continues to raise interest rates, causing the stock market to continue to fall and cryptocurrencies to plunge as well. All in all, that has created a lot of fear in the market,” said Michael Rinko, venture capital expert at AscendEx.

This is the second time in a week Bitcoin falls below $30,000 Screenshot CoinMarketcap

This is the second time this week Bitcoin falls below $30,000. According to analysts, $30,000 is a major milestone for Bitcoin and say it could fall even more if it can’t hold there. This time last week, Bitcoin hit a recent high of $40,000, but quickly went down the next day and repeatedly hit new lows.

In addition to Fed policy, reported US inflation is higher than market expectations and the macro-economic risk removal movement that is attracting attention is also responsible for the sharp drop in Bitcoin price. Global issues like Russia-Ukraine conflict, The continuous blockade of the Covid-19 epidemic in China has strained supply chains around the world, putting pressure on the market to erase some of the gains made since the end of 2020, which includes the value of Bitcoin.