Symbols that have been referenced
BTCUSD is down 0.95 percent.
-1.44 percent DOGEUSD
-2.73 percent on the DJIA
-2.91 percent on the S&P 500
3.52 percent decrease in COMP
-7.92 percent COIN
Bitcoin and other cryptocurrencies fell on Sunday, with the asset class's losses accumulating over the weekend as a result of U.S. statistics showing persistent inflation pressures in May, marking the quickest rate of increase since December 1981.
According to CoinDesk and Kraken data, Bitcoin BTCUSD, -0.95 percent was down around 3% to $27,530, Ethereum was down 2.5 percent to around $1,484, while meme coins like Dogecoin DOGEUSD, -1.44 percent were down around 5% at the time of last check Sunday afternoon.
Cryptocurrencies, which trade 24 hours a day, are replicating Wall Street's steep losses following Friday's report showing that U.S. inflation increased 1% in May, far higher than the 0.7 percent monthly rise predicted by experts polled.
Investors are concerned that rising inflationary pressures could prompt the Federal Reserve to take more aggressive action. The Fed begins its two-day policy meeting on Tuesday, with a half-percentage point increase in the fed-funds rate predicted when the meeting closes on Wednesday. The policy rate is presently between 0.75 percent and 1 percent.
Stock market losses spread to perceived riskier assets, including cryptocurrencies, which fell on Friday. Bitcoin has plunged nearly 60% from a November 2021 high of just over $27,000 to just over $27,000 on Sunday. On Twitter, the hashtags #cryptocrash and #bitcoincrash were trending.
Read: Stocks plummet as a spike in inflation sparks market tremors: What investors need to know
"From the next cycle's perspective, we're definitely at the bottom, but that doesn't imply the price can't go up another 50%," says the analyst.
"FWIW, I don't believe we've reached rock bottom yet because conferences are still sold out, crypto parties are still expensive, teams are still behaving badly, and the macro climate is still weak." Layoffs have begun, but they are not yet widespread.
Some crypto trading platforms, including Coinbase Global Inc. COIN, -7.92 percent, have frozen hiring or announced layoffs as cryptocurrency prices have fallen this year, with crypto exchange Gemini recently announcing that 10% of jobs would be eliminated.
"I thought it was a sick prank," says the author. They turned down other employment offers in order to work with Coinbase, and they are now jobless.
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