Bitcoin Lost 14% At Its Peak, Last Time This Happened in 2020
Over the past 24 hours, the value of the world's main cryptocurrency plummeted 14% and market capitalization dropped to USD 515 billion.
By 11 a.m. on May 12, BTC had managed to rebound to $28,000 from $26,700. This is the lowest since December 2020.
Overall, the cryptocurrency's value has been falling since late March. In some periods, it exceeded $48,100. Since then, it has dropped 40-45%.
So why has Bitcoin value dropped? This is mainly due to continued negative trends in the U.S. and global economy. Yesterday the U.S. Bureau of Statistics released new data on the growth of consumer prices in the country. For the year they rose 8.3%, slightly higher than the 8.1% forecast. The S&P 500 (-1.65%) and Nasdaq Composite (-3.18%) were also down slightly.
Daily liquidations exceeded $1.23 billion, with the largest liquidation being $10 million. The FOMO index stopped at 12 points, an "extreme fear." This usually indicates an approaching price bottom.
The entire cryptocurrency market was also dragged down by the fall of BTC and ETH (-17%, to $1,910). Its capitalization fell to $1.2 trillion (-18%). The following altcoins fell the hardest:
SOL (-30%, to 44.5 USD);
SHIB (-29%, to 0.000011 USD);
ADA (-26%, to 0.45 USD);
XRP (-25%, to 0.38 USD);
DOT (-24.7%, to 8.09 USD).
However, some of them were also on the plus side. Traditionally, USDC, BUSD and TUSD steblecoins strengthened, as well as TerraUSD (UST), which has been suffering lately, demonstrated incredible growth. It grew in price by 57% at once, up to 0.64 USD.