The world’s main cryptocurrency continues to depreciate rapidly. Tonight, the rate has temporarily dropped below $28,000, the lowest since December 2020. Bitcoin price dropped to $27,927, but at the time of the note’s publication, the cryptocurrency was valued at $28,300. Analysts characterized $30,000 as a key level for the cryptocurrency’s largest market cap and said it could drop further if it fails to stay at this level.

Experts attribute the decline in the value of the cryptocurrency to the release of inflation data in the US, which stood at 8.3% in April. This is the maximum of the last 40 years. Inflation is keeping investors from investing in risky assets, including cryptocurrencies.

Last week, bitcoin traded around $40,000, but the rate quickly turned around, after which the cryptocurrency updated several lows in recent years. Analyst Ali Martinez said that although he did not rule out the possibility of the exchange rate falling to $20,000, Bitcoin has a real chance to return to the $35,000 rate in the current cycle. Source