The cryptocurrency market is in a bloodbath and the leader of the board, Bitcoin nosedived drastically reaching its lowest since June last year. The dominating currency slipped to almost a little over the $29,000-mark, while its counterparts also followed suit.
Although, cryptocurrencies are seen as a resort to hedge funds against inflation which has been soaring stubbornly in the past few months pushing major central banks to tighten monetary policy stance and hike key rates.
In a raging inflation case, cryptocurrencies especially Bitcoin could have a possible moment of glory, however, concerns about economic growth from the shocks of the pandemic and a possible scenario of recession going ahead – have led to vulnerability and panic selling in this market.
On Wednesday, Bitcoin dropped to almost $29,011.10 – the lowest since June 2021. It traded currently around $29,500 with a market up of around $597.7 billion. The performance comes after a hotter-than-expected inflation data.
As per Coinbase data, in the last 24 hours, Bitcoin has slumped by around 8%, while the decline is around 24% in the last seven days. In a year, Bitcoin has plummeted by around 47.5%.
The second-largest crypto, Ethereum dived over 3% in the last 24 hours, while the drop is more than 18% in the last seven days.
The latest US consumer price index moderated for the first time in eight months, however, stayed near its four-decade highs. As per the Bureau of Labor Statistics, US inflation increased 0.3% in April on a seasonally adjusted basis after rising 1.2% in March. Over the last 12 months, the all items index increased 8.3% before seasonal adjustment.
As per BLS, increases in the indexes for shelter, food, airline fares, and new vehicles were the largest contributors to the seasonally adjusted all items increase. The food index rose 0.9% over the month as the food at home index rose 1%. The energy index declined in April after rising in recent months. The index for gasoline fell 6.1% over the month, offsetting increases in the indexes for natural gas and electricity.
As per CoinMarketCap, the global crypto market cap is at $1.29 trillion – a 13.08% decrease over the last day. The total crypto market volume over the last 24 hours is $173.99 billion, which makes a 20.10% decrease.
Further, the total volume in DeFi is currently $19.95 billion, 11.47% of the total crypto market 24-hour volume. The volume of all stable coins is now $161.58 billion, which is 92.86% of the total crypto market’s 24-hour volume.
Among the trending cryptocurrencies is – TerraUSD which dipped around 56%, Terra Luna slipping over 95%, IOTA diving 24.5%, and Anchor Protocol shedding over 77%.
The decentralized stablecoin running on Ethereum that attempts to maintain a value of $1.00, is now trading below $0.5. Terra USD has slumped by more than 60% in the last 24 hours, while the plunge is about 85% over the last seven days.