The cost of the world's second largest cryptocurrency Ethereum fell during trading on June 12 to a minimum in more than a year - since March 2021, Bloomberg wrote.
Over the past 24 hours, Ethereum prices have dropped to $1,436.18, according to data from the Coinmarketcap exchange. This afternoon, the cryptocurrency was worth approximately $1,460 — 7.8% less than the day before. The capitalization of Ethereum was $176.8 billion.
The largest cryptocurrency by capitalization, bitcoin, fell in price on June 12 to its lowest level since May 12, Bloomberg noted. According to Coinmarketcap, the price of bitcoin dropped to $27,266, and this afternoon it was trading at $27,394, which is 5% less than the day before. The capitalization was $522.2 billion. The Dogecoin cryptocurrency, which Tesla CEO Elon Musk likes, fell more than 11.5% cheaper, and Shiba Inu, another meme-cryptocurrency, fell more than 10%.
Bloomberg calls one of the reasons for the fall in the cryptocurrency market new statistics on inflation in the United States, which turned out to be higher than expected. According to the US Federal Bureau of Labor Statistics, the consumer price index in May was 8.6% higher than in May 2021. This is the maximum for more than 40 years - since 1981. Core inflation excluding food and energy increased by 6%.
In addition, the cryptocurrency market is negatively affected by the tightening of monetary policy by central banks around the world, according to Bloomberg.
Almost 30% of the richest people in the world directly or indirectly invest in cryptocurrencies, and this share is higher than among investors who are not billionaires, a survey by the American Forbes showed. Almost one in five of the 65 billionaires surveyed said they have at least 1% of their wealth in cryptocurrencies. 80% of billionaires who invested in cryptocurrency said they invested less than one-tenth of their wealth in it, writes Forbes.