Bitcoin’s (BTC) price has dropped below $115,000 U.S. as worries increase about the U.S. economy and the potential for stagflation to occur.
The entire cryptocurrency market is down on Aug. 18 as heightened macroeconomic concerns trigger more than $500 million U.S. in forced selling among investors.
Bitcoin is down more than 2% and trading at $114,900 U.S. after recently hitting an all-time high of $124,496 U.S.
At the same time, Ethereum (ETH), the second biggest cryptocurrency after Bitcoin, is down 4% and trading at $4,250 U.S. after nearing a record high of $4,800 U.S.
Smaller cryptocurrencies such as Solana (SOL), XRP (XRP), and Dogecoin (DOGE) are each down about 5% to begin the trading week.
The reversal lower comes after higher-than-expected inflation data raises questions about whether the U.S. Federal Reserve will lower interest rates in September as hoped.
At the same time, concerns are growing about stagflation, which is when inflation rises even though economic growth is stagnant or in decline.
The last serious occurrence of stagflation happened in the late 1970s and early 1980s.
The worries have led investors and traders to sell $552.58 million U.S. of Bitcoin in the past 24 hours, according to data from Coin Metrics. Crypto trades 24 hours a day, seven days a week.
Cryptocurrency stocks are also under pressure, with MicroStrategy (MSTR) and Coinbase Global (COIN) each in the red in premarket trading on Aug. 18.
However, some analysts note that crypto typically experiences a decline in August and that a temporary pullback and consolidation can be healthy for the sector.
BTC is up 23% this year, more than double the 10% gain seen in the benchmark S&P 500 stock index.
