Bitcoin and Ethereum retreat further as flight to safer assets continues

Bitcoin and Ethereum fell further as investors continued to pull out of cryptocurrency and plough money into less volatile and more secure sectors.

The leading digital currency slipped 1.6% to US$29,925 as it languished around a key support level, with its closest rival by market value, Ethereum, following suit by declining 1.7% to US$2,040.

As the UK reported its highest inflation in 40 years, it reinforced the global deterioration of the cost of living crisis, with the typical trend for investors during an economic downturn to seek safe havens rather than keeping growth and risky stocks clearly being shown.

Meanwhile, last week’s Terra crash continues to impact the cryptocurrency market.

“Terra’s crash has reminded traders how risky crypto investments are, and they should think before putting their savings in this asset class,” Naeem Aslam, Avatrade chief market analyst, said.

Much of the crypto world mirrored the two leaders, with 75% of the top 100 changing hands in negative territory on Wednesday.

Cardano and Polkadot were the largest fallers amongst the biggest names, easing 3.7% and 6.0% lower respectively.

Kadena lost the greatest value by far, shedding 13% of its value and just about keeping its place in the ‘top 100’ list.

Litecoin and UNUS SED LEO, meanwhile, were the most notable rebels to reverse the trend, climbing 1.7% and 3.7% respectively.

Kyber Network Crystal v2 surged onto the list, advancing by over a third of its total value on Wednesday morning.