[Bitcoin Now] 8% Drop Amid Inflation Fears... Ethereum Plunge Worsens Investor Sentiment

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Bitcoin prices plunged as fears of inflation were compounded by concerns of a 'bank run' on Ethereum, the leading altcoin.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:50 a.m. on the 13th, Bitcoin was priced at $26,070 (approximately 33.57 million KRW), down 8.09% from the previous day. This is the first time Bitcoin has fallen to the $26,000 range since December 2020.

Bitcoin prices have been declining due to the impact of the U.S. Consumer Price Index (CPI) in May, which rose 8.6% compared to the same period last year. The CPI increase rate marked the highest in 41 years. Joe DiPascal, CEO of BitBull Capital, said, "The current market situation is deteriorating," adding, "Inflation figures are clearly not a good sign for the market." First Republic Bank, a private banking specialist, expressed concerns about the cryptocurrency market in its weekly review, anticipating that major central banks will continue quantitative tightening and interest rate hikes through 2023.

Alongside this, concerns over a bank run on Ethereum are also worsening investor sentiment. As worries about defaults in Ethereum-based lending services emerged, Ethereum's price dropped 10.50% from the previous day to $1,366 (approximately 1.76 million KRW) as of 10:40 a.m., marking the lowest level since January 2021.

Bitcoin trading volume has sharply declined compared to the previous month since the beginning of this month. As of the 12th, the average daily trading volume of Bitcoin was $28.84809 billion (approximately 37.139 trillion KRW). Compared to last month's daily average of $35.14265 billion (approximately 45.2426 trillion KRW), this represents a 17.91% decrease.

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment toward cryptocurrencies, fell by 3 points from the previous day to 11 points (extreme fear). Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investment, to 100, indicating optimism.

This content was produced with the assistance of AI translation services.