Bitcoin and Ether have reduced their losses after falling early on Sunday in a widespread recession by the crypto complex, following data showing that US inflation hit a 40-year high.
Bitcoin has fallen to its lowest level since May 12, $ 26,876.51, while Bitcoin has fallen 6.4pc to its lowest level since March 2021 at $ 1,424.40.
Virtually all top tokens tracked by Bloomberg went down on Sunday, and things like Dogecoin and Avalanche fell by 9.4pc and 13pc, respectively.
But then they showed signs of life, regaining lows on Sunday at 11:45 am in New York, and Ether temporarily returned to the positive territory of the day.
US inflation data on Friday exceeded expectations, shattering expectations that price increases may have peaked.
Stocks have fallen, but the Treasury yields for two years have risen to their highest since 2008.
Bitcoin and other cryptocurrencies have suffered in recent months as the Federal Reserve raises rates, global policy makers step up their efforts to combat rising prices, and risk assets such as tech stocks recede. is.
Inflation data has helped drive downward behavior, saying, “It’s very likely that this bear will continue until next week. [Federal Reserve] The meeting is approaching, “said Vijay Ayyar, Vice President of Corporate Development and International Affairs for the crypto platform Luno.
“Looking at the previous bear market, Bitcoin is usually down more than 80% and Altcoin is usually down more than 90%,” Ayyar said. “If that is the case, Bitcoin prices could drop significantly next month or two months.”
Some analysts say that if Bitcoin falls below the $ 20,000 high, there could be a rapid gap, with a 200-week moving average close to $ 22,000 and a 2017 high of $ 19,511. It states that there is.
According to Coinglass data, long cryptocurrency clearings totaled $ 258 million on Friday and $ 290 million on Saturday before surpassing $ 100 million on Sunday for the third consecutive day.
In addition, the MVIS CryptoCompare Digital Assets 100 Index is a market capitalization-weighted index that tracks the performance of up to 100 tokens, dropping to the lowest level since January 2021.
