Bitcoin and Ether fell on Sunday, amid a broader slide in cryptocurrencies in the wake of data showing that inflation in the United States reached its highest level in 40 years.
Ether lost as much as 5% to $1,445.56, its lowest since March 2021, while Bitcoin fell more than 7% to $2,7264.65, its lowest since May 12, in Asian trading.
US inflation data released on Friday beat expectations, dashing any hopes that price hikes have peaked. Stocks sank while two-year Treasury yields rose to their highest level since 2008.
Bitcoin and other cryptocurrencies have struggled in recent months, as the Federal Reserve raised interest rates, amid global policymakers’ efforts to combat price hikes, and as risky assets such as technology stocks.
“It is very likely that we will see this downward trend continue into next week, especially with the FOMC meeting,” Vijay Ayar, vice president of corporate and international development at crypto platform Luno, was quoted by Bloomberg as saying.
