Bitcoin has fallen below $ 27,000 as the recent sell-off in the cryptocurrency space continues.
According to Coin Metrics, the price of bitcoin last fell 8.76% to $ 26,848.20 as of 1:47 a.m. ET on Thursday. Ether fell by more than 13% to $ 1,832.33.
Cryptocurrencies fell along with stocks after the Bureau of Labor Statistics reported consumer prices jumped 8.3% in April, slightly higher than economists polled by Dow Jones expected.
This frightened investors, forcing them to exit risky assets, including crypto. Cryptocurrencies still strongly correlate with the S&P 500 and, more recently, with the Nasdaq Composite.
“The crypto market has been under pressure for some time,” said Michael Rinko, an AscendEx venture worker. “The Fed continues to grow, so stocks continue to fall, and the crypto is declining along with that. As a rule, it causes a lot of fear in the market. “
This is the second time this week bitcoin has fallen into the $ 29,000 range. Analysts have named $ 30,000 a key level for the largest cryptocurrency by market capitalization and said it could fall even more if not held back.
This time last week Bitcoin reached a recent high of $ 40,000, but quickly turned back the next day and has steadily reached new lows ever since.
Investors are also digesting the big news from the Terra project, whose suddenly popular TerraUSD stablecoin at one point last week collapsed almost 100%, breaking the peg to $ 1. A decentralized algorithmic stablecoin must be backed by a combination of digital assets, including bitcoin.