Bitcoin and Ethereum slumped for a ninth day as investors braced themselves for a 75 basis point hike in interest rates by the US Federal Reserve.
Bitcoin gave up 6.1% to US$21,184, while its largest rival by market value, Ethereum, was down 8.7% to US$1,115.
Cryptocurrencies yet again mirrored the sell-off in wider global markets. The Nasdaq, which is closely correlated to digital currencies, closed 1.4% lower on Tuesday with further losses flagged for today.
“Investors know that the Fed will want to get more aggressive on the back of a difficult-to-ease inflation and yesterday’s producer data came as another confirmation that inflation has more to inflate in the coming months," Ipek Ozkardeskaya, Swissquote senior analyst, said.
“At this point, the decision of a 75bp is almost made, the Fed should only confirm the market verdict.
“If the Fed surprises with a 50bp hike, the market will certainly rebound on relief.”
U.S. producer prices surged 10.8% in May from a year earlier, according to data released yesterday, highlighting the ongoing threat to the world's largest economy from surging inflation.
95 of the leading 100 coins were hanging hands in negative territory.
Tron and Quant were the standout fallers, having sunk 19% and 14% respectively.
In contrast, Helium advanced 7.2% and Kyber Network Crystal v2 gained 10% as it climbed into the top 100 coins.