Trading pause among leading global cryptocurrency lenders and prospects of aggressive interest rates hike continue to rattle digital currencies.
- Bitcoin price lost more than 16% over the past day.
- Investors indulge in selling, citing possible aggressive rate surges ahead.
- Paused trading by crypto lender Celsius fueled concern about the potential to accomplish its commitments.
Bitcoin (BTC) remains in freefall, 16% down within the previous 24 hours. While publishing this blog, the world’s largest crypto by value traded at $22,187. That had Bitcoin traversing price levels never witnessed since December 2020.
The latest crash dragged BTC 53% lower this year and 68% down since its ATH of November 10. The overall crypto market capitalization reflects the downbeat mood in the crypto world. This metric lost the trillion-mark, changing hands near $933 Billion, following a 9.96% drop over the past day.
Why Is BTC Price Crashing?
Two factors contribute to Bitcoin’s downside pressure. The leading driver seems to be the more-than-expected inflation numbers by the U.S on Friday. Meanwhile, the largest economy globally sees inflation escalating at the quickest pace in 40 years. May saw the number at 8.6%, up from April’s 8.3%. Such readings canceled the hopes of inflation having peaked. Moreover, it amplified worries that the Fed will resort to aggressive tightening.
