Bitcoin The cryptocurrency fell below the closely watched $30,000 level amid a broader slide as high UK inflation fueled fears of higher long-term interest rates.
The largest coin fell as much as 4.5% before undergoing some slide to trade at around $29,175 as of 11:50 a.m. ET in London on Wednesday. Ether 6% and smaller tokens like solana And avalanche suffered a sharp decline. European shares and US equity futures also declined.
UK consumer-price data showed on Wednesday that inflation remained above 10% in March, adding to recent signs that central banks will continue to lift borrowing costs. Traders are giving pause after bitcoin gained nearly 80% this year, a rally driven in large part by speculation that a rate cut was imminent.
Data from CoinGlass shows that the sudden selloff triggered the liquidation of $175 million worth of long positions in the crypto markets.
“This appears to be an excellent liquidation and structural market reaction,” said Vetel Lunde, senior analyst at K33 Research.
US economic indicators this month also undermined sentiment that a truce among regional banks would force a crisis federal Reserve Let go of tightening A key measure of US inflation showed signs of easing in March, but perhaps not enough to prevent Fed officials from turning the wedge. In addition, American workers are seeing wage growth outpacing inflation.
Recent interest rate fluctuations are unlikely to derail this year’s crypto rally, according to Fadi Aboualfa, head of research at digital-asset custodian Copper. He pointed to the positive funding rate – where long investors pay a small fee to short traders – as a sign of overall bullish sentiment.
“From what we have seen in talking to various hedge funds, many are consistently allocating to bitcoin,” he said in an email. “We’re certainly not seeing any fundamental change.”
The largest coin fell as much as 4.5% before undergoing some slide to trade at around $29,175 as of 11:50 a.m. ET in London on Wednesday. Ether 6% and smaller tokens like solana And avalanche suffered a sharp decline. European shares and US equity futures also declined.
UK consumer-price data showed on Wednesday that inflation remained above 10% in March, adding to recent signs that central banks will continue to lift borrowing costs. Traders are giving pause after bitcoin gained nearly 80% this year, a rally driven in large part by speculation that a rate cut was imminent.
Data from CoinGlass shows that the sudden selloff triggered the liquidation of $175 million worth of long positions in the crypto markets.
“This appears to be an excellent liquidation and structural market reaction,” said Vetel Lunde, senior analyst at K33 Research.
US economic indicators this month also undermined sentiment that a truce among regional banks would force a crisis federal Reserve Let go of tightening A key measure of US inflation showed signs of easing in March, but perhaps not enough to prevent Fed officials from turning the wedge. In addition, American workers are seeing wage growth outpacing inflation.
Recent interest rate fluctuations are unlikely to derail this year’s crypto rally, according to Fadi Aboualfa, head of research at digital-asset custodian Copper. He pointed to the positive funding rate – where long investors pay a small fee to short traders – as a sign of overall bullish sentiment.
“From what we have seen in talking to various hedge funds, many are consistently allocating to bitcoin,” he said in an email. “We’re certainly not seeing any fundamental change.”