Ether dropped as much as 5% to $1,445.56, its lowest level since March 2021, while Bitcoin dropped to $27,264.65, its lowest since May 12. Virtually every major token tracked by Bloomberg tumbled on Sunday, with names like dogecoin and avalanche down more than 7%.
Friday’s US inflation data beat expectations, dashing any hope that the price increase may have peaked. Stocks tumbled as yields on two-year Treasuries rose to the highest level since 2008.
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Bitcoin and other cryptocurrencies have suffered in recent months as the Federal Reserve raises rates and monetary policymakers step up efforts to combat price increases and as risky assets such as tech stocks retreat.
US inflation data is helping to fuel the weekend’s lows and “we will most likely see this decline continue into the next week, especially with the FOMC meeting.” [comtitê de política monetária do Fed] coming,” said Vijay Ayyar, vice president of corporate and international development at cryptocurrency platform Luno.
“If we look at past bear markets, bitcoin is down around 80% normally, with altcoins hitting more than 90% bearish,” Ayyar said. “If this is the case, we could see much lower bitcoin prices in the next month or two.”
Total cryptocurrency settlements were above $100 million for the third straight day on Sunday, after $258 million on Friday and $290 million on Saturday, according to data from Coinglass.
And the MVIS CryptoCompare Digital Assets 100 index, a market cap-weighted measure that tracks the performance of the top 100 tokens, has dropped to its lowest level since January 2021.