After new data showed inflation is still running near 40-year highs, the price of the virtual currency fell below the $30,000 mark for the second time this week.
It dropped as low as $29,026.66 earlier in the day, its weakest point since December 2020. Before paring losses, ether fell 8%. It was down by less than 1%.
The Bureau of Labor Statistics reported consumer prices for the month of April jumped 8.3%, which was slightly higher than expected by economists.
That made investors exit risk assets. Cryptocurrencies are highly correlated with the S&P 500. The stock indexes were lower.
There is a chart.
Line chart with 2892 data points.The chart has 1 X axis displaying Time. Range: 2022-05-09 09:30:00 to 2022-05-11 10:06:00.The chart has 1 Y axis displaying values. Range: 28000 to 34000.End of interactive chart.
This is the second time this week that it has fallen into the range. If it can't hold at $30,000, it could fall even further.
After hitting a high of $40,000 last week, it quickly reversed and has been hitting new lows ever since.
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