Cryptocurrencies incurred heavy losses, Wednesday, amid weak investor sentiment towards high-risk assets due to fears of increasing inflationary pressures, which cost a number of digital currencies more than a third of their market value, while the Luna currency plunged more than 90% of its market value.
Bitcoin fell by 6.7% at $28,508, before regaining some recovery and approaching again the level of $30 thousand, which has a moral value.
The second largest cryptocurrency by market capitalization, Ether, fell about 10% to $2,056.72, and Ripple fell 21.3% to 39.45 cents. In general, the majority of cryptocurrencies tumbled, and prices fell between 20% and 30%.
The Terra Usd coin, which was ranked third among the largest stablecoins, trimmed its losses to 6.9% at 75.27 cents, after tumbling to 29.98 cents earlier in trading. The Terra platform that owns this coin is also the owner of the falling Luna coin.
Luna tumbled within hours and lost 96% to less than a dollar, compared to $31 at the beginning of trading on Wednesday and $116 last month.
The pressure on Bitcoin and cryptocurrencies increased after the release of inflation data in the United States, which showed that the consumer price index rose by 8.3% in April, while analysts’ expectations indicated a rise of 8.1%.