The Core Lithium Ltd (ASX: CXO) share price has been in the dirt over the past week.
Currently, shares in the ASX lithium producer are down 2.26% to $1.408. This means since last Wednesday, the share has fallen 15.47% despite no company announcements.
Let's take a look at what's putting selling pressure on the company's shares.
What's going on with the Core Lithium share price?
After rocketing to a record high of $1.688 on 13 September, the Core Lithium share price has continued to fall.
This comes as the S&P/ASX 200 Materials Index (ASX: XMJ) is one of the worst performers on the ASX today, down 2.41%.
When looking at the past week, the sector has tumbled 5.22%
Investor sentiment in the market is considerably weaker as all eyes are focused on the United States Federal Reserve's meeting tomorrow.
Any aggressive moves by the central bank will induce investors to flee the US markets, with global markets following suit.
Economists are expecting the Fed to raise the interest rate by 75 basis points, but could go up to 100 basis points to cool off inflation.
Earlier this month, the CPI data came out showing that inflation rose 0.1% on a monthly basis, and 8.3% annually.
Whatever happens this week, Core Lithium is playing the long game.
The company wholly owns the Finniss Lithium Project, which is targeting first production of spodumene concentrate by the end of 2022.
Electric vehicles are becoming more mainstream in Australia. Core Lithium is well placed to respond to demand.
The company recently announced it significantly increased the mineral resource estimate and ore reserves estimate for Finniss.
Despite tanking this week, the Core Lithium share price has rocketed by 250% over the past year, and is up 138% year to date.
Based on today's price, Core Lithium commands a market capitalisation of approximately $2 billion.