Bitcoin went below $26,000 for the first time in 16 months, part of a larger cryptocurrency sell-off that wiped away more than $200 billion in a single day.
Bitcoin’s price decreased to $25,401.29 on Thursday, according to Coin Metrics. This is the first time since December 26, 2020 that the cryptocurrency has fallen below $27,000.
Bitcoin has already regained some of its losses and is currently trading at $28,569.25, down 2.9 percent.
The second-largest digital currency, Ether, has dropped to as low as $1,704.05 per coin. Since June 2021, this is the first time the token has fallen below $2,000 in value. Ether was last trading at $1,937.88, down 8.8%.
Investors are fleeing cryptocurrencies at a time when stock markets have fallen from their highs following the coronavirus epidemic, citing concerns about rising costs and a weakening economic outlook.
According to figures released Wednesday, inflation in the United States jumped 8.3% in April, above analysts’ predictions and reaching the highest level in 40 years.