Cryptocurrency Crash: Over 200 Billion Dollars Lost in Less Than a Day
It’s a sad day for cryptocurrencies and Bitcoin.
Bitcoin fell below $26,000 for the first time in 16 months, part of a larger sell-off in cryptocurrencies that wiped out more than $200 billion from the market in a single day.
According to Coin Metrics, the price of bitcoin fell to $25,401.29 on Thursday. This is the first time the cryptocurrency has dropped below $27,000 since December 26, 2020.
Bitcoin has since recovered some of its losses and was last trading at $28,569.25, a 2.9 percent loss.
Ether, the second-largest digital currency, has plummeted to as little as $1,704.05 per coin. This is the first time the token has dropped below $2,000 since June 2021. Ether was last trading down 8.8 percent at $1,937.88.
Investors are fleeing cryptocurrencies at a time when stock markets have plummeted from the coronavirus pandemic’s highs due to concerns about rising prices and a deteriorating economic outlook.
Inflation in the United States rose 8.3 percent in April, exceeding analysts’ expectations and approaching the highest level in 40 years, according to data released Wednesday.