Bitcoin and other cryptocurrencies plummet over interest policy fears

The price of Bitcoin and other cryptocurrencies continues to plummet due to investor fears about US interest rate policy. One Bitcoin cost $27,464 on the Bitstamp trading platform on Sunday afternoon, down 3% compared to the previous day.

Bitcoin has already dropped 9% since the publication of US inflation data on Friday. Its price is sliding closer to its lowest level since the end of 2020, when it reached $25,400 in mid-May.

Ethereum, the second-largest digital currency, has also come under pressure over the past few days.

The high inflation rate in the US unexpectedly rose further in May, soaring to its highest level in more than 40 years. Consumer prices rose 8.6% compared to the same month last year, a further blow for struggling financial markets.

In Germany, the DAX lost more than 3% on Friday, while Wall Street saw similar falls.

Investors fear high inflation rates in many parts of the world will dampen consumption as people are forced to spend more money on food, electricity and housing.