Through all the market volatility and news of inflation, BTC and ETH have finally managed to stem their losses for a bit. Markets have been reacting to record inflation levels and have ceded a lot of ground. ETH prices dropped around 6.4% to reach $1424.4, the lowest in the last 14 months. BTC price is now at $26,876.51, the lowest since the 12th of May, 2022.
Other cryptos haven’t been faring that much better – Dogecoin values are down 9.4% and Avalanche is down 13%. What triggered all this downward activity is inflation data – it was worse than expected. Vijay Ayyar, Luno’s VP says it is likely that things will continue as is, in the light of the FOMC meeting. According to him, BTC declined in value by 80% in previous bear markets and altcoins have lost 90% during the same time.
Some analysts say that if BTC prices drop below the high $20,000 levels, the possibility of it going further down is likely. If it does, then the price could get close to the moving average data at 200-weeks. The price at that point in time was $22,000. According to reports, MicroStrategy has not been bothered by the changes in BTC values. MicroStrategy is not planning to drop any of its BTC holdings anytime soon, said CFO Andrew Kang.
MicroStrategy, Tesla and a few other businesses have a lot of BTC investments, and none are planning to sell their holdings any time soon. Inflation data, rising gas and consumer goods prices are wreaking havoc on stocks across the globe.