The warmth of US inflation also engulfed the crypto market as Bitcoin (BTC) and Ethereum (ETH) plunged even more severely on Monday morning.
Panic selling occurred during the Asian session, where BTC plunged below $ 25,000 for the first time since December 2020 at $ 24,888.
However, the crypto king re -reduced losses to re -trade at around $ 25,500 shortly after the fall.
ETH, meanwhile, traded at $ 1,342 after touching its lowest level since February 2021, at $ 1,303.
The fall was initially said to be influenced by the announcement of cryptocurrency lending firm, Celcius Network to temporarily suspend withdrawals and transfers between accounts due to volatile market conditions.
The platform offers interest -bearing savings accounts, loans and payments with digital and fiat assets. Celsius returns 80% of the proceeds to network users as a reward, while another 20% funds project expansion.
As a result, the announcement has added to the suffering for cryptocurrencies that are already affected by US inflation data.
Inflation in America unexpectedly rose higher in May with an increase of 8.6% from market expectations to ease to 8.3%.
The shock in this reading made investors start to place expectations that the Federal Reserve (Fed) will take bigger steps in raising its interest rates to curb inflation from continuing to rise.
Most market -focused altcoins also suffered following the sharp fall of BTC, where Solana (SOL) declined to $ 28, Cardano (ADA) $ 0.48, Dogecoin (DOGE) $ 0.06 and Decantraland (MANA) $ 0.79.
