LUNC, Pundi X, Reef, Function X, Nervos Network Defy Market Selloff As Bitcoin Records Highest Losses Since June

The largest cryptocurrency by market capitalization, Bitcoin (BTC), sank more than 10%, the greatest drop since cryptocurrencies plunged in June, as the broad-based selloff in financial markets spilled over into the digital-asset sector, sending Bitcoin (BTC) below the $21,000 level once more.

The worst intraday decrease since the largest cryptocurrency by market value sank 15% on June 18 in the wake of the failure of cryptocurrency lender Celsius, Bitcoin dropped as much as 11% to $20,056. This year, Bitcoin has fallen by around 56%.

As the cryptocurrency market tumbled under selling pressure, likewise, altcoins fell. The majority of altcoins recorded losses of between 7% and 20%. Solana (SOL), Avalanche (AVAX), and Uniswap (UNI) are down by more than 8%. Meme coins, such as Shiba Inu and Dogecoin, are also down nearly 6%. Ethereum was down 7.43% at $1543 at the time of publication.

According to information from CoinShares, Ethereum-based investment products had withdrawals of roughly $62 million last week, making up the majority of the funds taken out of digital asset vehicles.

At the time of publication, the native token of Terra Classic (The old Terra Chain) LUNC was up 7.80% against the backdrop of other cryptocurrencies that traded in red at press time. Pundi X New (PUNDIX, +46.49%),Nervos Network (CKB, +13.79%), Function X (FX,+22.32%), Reef (REEF, +13.28%) were also up in the last 24 hours.

The Reason for the Drop

In August, US inflation was stronger than anticipated, presumably keeping the Federal Reserve on track to raise interest rates by 75 basis points for the third time in a row.

According to Labor Department data released on Tuesday, the consumer price index gained 0.1% from July after remaining unchanged in June. Prices increased 8.3% from a year ago, a little slowdown. The so-called core CPI, which excludes the more erratic food and energy components, increased by 6.3% from a year earlier and 0.6% from July. All measures exceeded expectations.

With historically high and pervasive price pressures still present, the Fed’s inflation objective is still a ways off.

Chair Jerome Powell said last week that the central bank would act “forthrightly” to achieve price stability, and some policymakers voiced support for another historically large rate hike. Officials have said their decision next week will be based on the “totality” of the economic data they have on hand, which also illustrates a strong labor market and weakening consumer spending.

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