Jun 13, 2022 05:00AM ET
The BTC price fell to USD $25,616.90 as the global cryptocurrency market plunged.
The fall in the price of BTC is due to high inflation rates.
Also, old mining machines are about to be switched off following the drop in the price of BTC.
Because of the decline in the global market cap of cryptocurrencies, the price of BTC has fallen to USD 25,616.9. For a start, the market capitalization is recorded at USD 1.04 trillion, a fall of 4.87%.
Together with the fall in BTC, almost all major coins, except MANA, ICP, and NEO, are currently showing a red signal. The fall in the price of BTC indicates how the coin could not be exploited at a higher price after the recent USD 30,000 mark. Moreover, the current price of the coin is also roughly equal to the price reached in the first week of May, when BTC traded between USD 20,000 and 25,000.
In more detail, the reason for the fall in the cryptocurrency market is believed to be the high inflation rate, which is now at its highest since 1981. According to the US Bureau of Labor Statistics, the Consumer Price Index for all urban consumers rose by 1% in May on a seasonally adjusted basis, after having risen by 0.3% in April. Over the last 12 months, the all-items price index has increased by 8.6%.
As the inflation rate hit the stock market, it also had a direct impact on the cryptocurrency market, causing it to fall. In addition, BTC has not yet surpassed its December 2021 price of USD $50,000. Until then, the price of the coin had been on a downward trend with frequent spikes below USD 50 000.
The price of Ethereum has also fallen to USD 1,336.6, a drop of 7.44%. This price represents an 18-month low for the token. Coins such as XRP-3.13%, SOL-9.2%, and DOT-6.11% also fell.