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Bloomberg
Bitcoin continued its selloff into Asia’s on Monday morning as part of broader declines in cryptocurrencies after
a sharp rise in US inflation
triggered risk-off sentiment.
The world’s largest digital token tumbled as much as 6.4% to $25,593, its lowest level since May 12, in a seventh day of losses. Ether declines as much as 9% to $1,342.32. Other coins tracked by Bloomberg including Cardano, Dogecoin, Polkadot and Avalanche were also in the red.
“Cryptos remain at the mercy of the Fed and stuck in a merry dance with the Nasdaq and other risk assets,†said Antoni Trenchev, co-founder and managing partner of crypto lender Nexo. “We’re hearing Bitcoin forecasts in mid-teen and single-digit thousands which tells you the type of macro environment crypto is facing for the first time — and the levels of fear.â€
Traders are boosting bets for a more aggressive pace of Federal Reserve tightening after data showed that the US inflation jumped to a fresh 40-year high in May. This has triggered a selloff in the risk assets including crypto and the stocks.