Bitcoin Hits 18-Month Low with Sharp Drop... Falls Below $25,000 Intraday

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Hyunjung] Amid warnings over risk assets due to the shock of U.S. inflation, the price of Bitcoin fell below $25,000.

On the 12th (local time), Bloomberg reported that during the afternoon trading session, the price of Bitcoin dropped to $24,903, marking its lowest level since December 2020. Other cryptocurrencies also continued to decline amid selling pressure. The MVIS CryptoCompare Digital Assets 100 Index, which reflects the prices of the top 100 cryptocurrencies, widened its losses to 9.7%.

Antoni Trenchev, co-founder and managing partner of cryptocurrency lending firm Nexo, explained, "Cryptocurrencies are under the control of the Federal Reserve (Fed) and are dancing along with the Nasdaq and other risk assets," adding, "Cryptocurrencies are facing macro risks for the first time."

On the 10th, the U.S. Department of Labor announced that the Consumer Price Index (CPI) for May rose 8.9%, the highest since 1981, and the market expects the Fed to embark on a stronger tightening policy. Cryptocurrencies, which have struggled due to Fed policies in recent months, are taking a hit.

Other cryptocurrencies are also widening their losses. Ethereum plunged 12% to its lowest level since February 2021, Avalanche fell 15%, Solana dropped 14%, and Dogecoin declined 11%.

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