A Bitcoin coin lies on a screen showing the Bitcoin – US dollar exchange rate.
Fernando Gutierrez-Juarez | picture alliance | Getty Images
The price of bitcoin fell below the $30,000 mark on Wednesday for the second time this week, after new data showed inflation is still running near 40-year highs.
Bitcoin is little changed at $31,293.05, according to Coin Metrics, but earlier in the day it dropped as low as $29,026.66, its weakest point since December 2020. Ether initially fell 8% before paring losses. It was last less than 1% down at $2,331.69.
Cryptocurrencies declined with stock futures after the Bureau of Labor Statistics reported consumer prices for the month of April jumped 8.3%, which was slightly higher than expected by economists polled by Dow Jones.
That spooked investors, leading them to exit risk assets including crypto. Cryptocurrencies remain highly correlated with the S&P 500 and, more recently, the Nasdaq Composite.
This is the second time this week 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 can’t hold there.
This time last week bitcoin touched a recent high of $40,000 but quickly reversed the next day and has been steadily hitting new lows since.