Bitcoin fell to 18-month lows in Monday’s trading in Asia as the effect of Friday’s U.S. inflation data rippled through global risk assets.

The world’s largest cryptocurrency by market cap plunged 8.9% to $24,903.49, the lowest level seen since December 2020. As a broader sell-off advanced, other cryptocurrencies also declined. Indeed, the MVIS CryptoCompare Digital Assets 100 Index, gauging 100 of the top digital tokens, fell 9.7%, Bloomberg reports.

“Cryptos remain at the mercy of the Fed and stuck in a merry dance with the Nasdaq and other risk assets,” said Antoni Trenchev, co-founder of crypto lender Nexo. “We’re hearing Bitcoin forecasts in the mid-teen and single-digit thousands which tells you the type of macro environment crypto is facing for the first time -- and the levels of fear.”

Traders are bolstering bets for more aggressive tightening from the Federal Reserve as data last week revealed inflation in the U.S. hit a four-decade high last month. The crypto world has taken a knock recently, with the collapse of the Terra/Luna ecosystem in May, and the announcement on Monday morning that lender Celsius is halting withdrawals.

“Typically, I’d suggest being a buyer here” on Bitcoin futures, stated Rick Bensignor, president of Bensignor Investment Strategies. “But if you do get long, perhaps think about doing so with either a long call spread or short put spread to limit risk. If this dives, there’s no reliable support nearby.”

deVere CEO Nigel Green said of the Celsius announcement on Monday: “The cryptocurrency critics will jump on this situation, as they always do when there is a chance to attack. 

“However, I would argue many of the traditionalists are the same people who would have probably rebuffed the internet back in the 1990s and e-commerce giants such as Amazon as mere hype in the 2000s.”

In addition, other digital currencies were in decline on Monday. The world’s second largest, Ether, fell 12% to its lowest since February last year, whilst Solana was down 14% and Dogecoin 11%.

“If Ethereum continues to bleed toward $1,200 (the 200-week moving average) the outlook for other altcoins becomes even bleaker,” Trenchev added.