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Bitcoin shed nearly 3.5% of its value on Wednesday.
The cryptocurrency dropped as low as $29,026.66: a level not seen since December 2020. The second-largest cryptocurrency, Ether, fell 5% to $2,221.35.
Bitcoin’s prices have continued to fall following the broad stock sell-off in the US markets after the Federal Reserve tightened the monetary policy.
On Wednesday, the US consumer inflation rose to an annual rate of 8.3% in April, slightly lower than the previous months as energy prices eased off. The result was still higher than the analysts' estimates, prompting investors to shed risky assets as soon as possible.
Strike two
Bitcoin hit a 10-month low earlier on Tuesday before rebounding to $31,450, just six days after touching $40,000. This is the second instance this week when bitcoin has fallen into the $29,000 range.
Analysts have called $30,000 a key level for the largest cryptocurrency by market cap and said it could fall even further if it couldn’t hold there.
The total crypto market value hit $2.2 trillion on April 2, well off of its all-time peak of $2.9 trillion in early November.
Popular stablecoin TerraUSD crashed almost 100% at one point in the past week, breaking its $1 peg.
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