Bitcoin plunged below $26,000 for the first time in 16 months, amid a dramatic sell-off in cryptocurrencies that erased more than $200 billion from the entire market in a single day.
The price of bitcoin fell as low as $25,401.29 on Thursday, according to Coin Metrics. This is the first time the cryptocurrency has slipped below the $27,000 level since Dec. 26, 2020. Bitcoin has since deleted some losses and was last trading at $28,569.25, down 2.9%.
Meanwhile, Ether, the second-largest cryptocurrency, fell as low as $1,704.05 per coin. This marks the first time the token has plummeted below the $2,000 mark since June 2021. Ether was last down 8.8% at $1,937.88.
Investors started selling cryptocurrencies at a time when stock markets have slumped from the highs of the coronavirus pandemic on fears over increasing prices and a deteriorating economic outlook. U.S. inflation data out Wednesday showed prices for goods and services jumping 8.3% in April, higher than expected by analysts and close to the highest level in 40 years.
