Bitcoin and Ethereum down as positive momentum reverses

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Bitcoin and Ethereum down as positive momentum reverses

Top digital currencies slumped, mirroring the wider markets, as rising inflation and the escalating Coronavirus (COVID-19) crisis in China spooked i

Top digital currencies slumped, mirroring the wider markets, as rising inflation and the escalating Coronavirus (COVID-19) crisis in China spooked investors.

Bitcoin lost 2.6% to US$45,426, while smaller peer Ethereum fell 4.3% to US$3,368.

Both digital currencies are languishing about 30% below all-time highs seen in November, before the emergence of the Omicron variant and Russia’s invasion of Ukraine.

Chinese markets fell overnight, taking their cue from the US, as rising COVID-19 cases sparked widespread lockdowns across the country. 

Sentiment was also hit by data from the OECD which found inflation in rich countries hit a 30-year high in February on the back of soaring energy and food prices. 

Notable alt-coins trading in the red on Wednesday morning were Solana, Avalanche and Polkadot, down 4.5%, 5.6% and 5.1% respectively.

In total 89 of the leading 100 coins notched up falls.

Terra and Dogecoin were the biggest names to buck the trend, climbing 1.4% and 7.2% respectively.

Outside of the top 20, Mina and STEPN both advanced 6.0%.

www.proactiveinvestors.com