Bitcoin reaches near $29,000, lowest since June 2021. Check latest updates

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The cryptocurrency market is in a bloodbath and the leader of the board, Bitcoin nosedived drastically reaching its lowest since June last year. The dominating currency slipped to almost a little over the $29,000-mark, while its counterparts also followed suit.

Although, cryptocurrencies are seen as a resort to hedge funds against inflation which has been soaring stubbornly in the past few months pushing major central banks to tighten monetary policy stance and hike key rates.

In a raging inflation case, cryptocurrencies especially Bitcoin could have a possible moment of glory, however, concerns about economic growth from the shocks of the pandemic and a possible scenario of recession going ahead - have led to vulnerability and panic selling in this market.

On Wednesday, Bitcoin dropped to almost $29,011.10 - the lowest since June 2021. It traded currently around $29,500 with a market up of around $597.7 billion. The performance comes after a hotter-than-expected inflation data.

As per Coinbase data, in the last 24 hours, Bitcoin has slumped by around 8%, while the decline is around 24% in the last seven days. In a year, Bitcoin has plummeted by around 47.5%. 

The second-largest crypto, Ethereum dived over 3% in the last 24 hours, while the drop is more than 18% in the last seven days.

The latest US consumer price index moderated for the first time in eight months, however, stayed near its four-decade highs. As per the Bureau of Labor Statistics, US inflation increased 0.3% in April on a seasonally adjusted basis after rising 1.2% in March. Over the last 12 months, the all items index increased 8.3% before seasonal adjustment.

As per BLS, increases in the indexes for shelter, food, airline fares, and new vehicles were