After weeks of almost continuous good news for the cryptocurrency industry, we are seeing a widespread sell-off today. Big cryptocurrencies are down, altcoins are down, and even meme coins are having a rough day. In the last 24 hours, Bitcoin (CRYPTO:BTC) is down 5%, Ethereum (CRYPTO:ETH) is down 1.3% after being down as much as 8%, and Dogecoin (CRYPTO:DOGE) has fallen 2.4% as of 1 p.m. EST. Very few cryptocurrencies are trading higher today and some are down nearly 10% in the last 24 hours. Higher inflation in theory will lead to higher interest rates and investors looking for ways to hedge inflation and higher rates. As a store of value, Bitcoin, in particular, wasseen as a potential place for investors to put money if inflation picks up. That’s why it was up yesterday, but the trend has reversed course today.
Cryptocurrencies have been on a quick run higher over the past month. Bitcoin and Ethereum, in particular, are up over 20% and a pullback is natural at this point. It could simply be that big investors are taking some chips off the table today.