At 1:47 am ET on Thursday, the price of Bitcoin was down 8.76% to $26,848.20, according to Coin Metrics. Meanwhile, Ethereum dropped over 13% to $1,832.33.
Crypto dropped alongside stocks after the Bureau of Labor Statistics reported consumer prices for April were up 8.3%. This figure came in somewhat higher than predictions by economists polled by Dow Jones and spooked investors. As such, many investors exited risk assets, including crypto.
“The market is caught in the wider adversity of investment markets that are battling to decide where comfortable levels are in the wake of interest rate hikes designed to quell soaring inflation around the Western world.”
This is the second occasion this week on which Bitcoin has tumbled into the $29,000 range. Analysts have called $30,000 a key level for the cryptocurrency by market cap.