Bitcoin fell to its lowest level since the December lightning crash of last year as market expectations for the rising value of mortgages continued to rise.
On press, Bitcoin fell 5.68% to $ 43,558. Bitcoin’s price has been capped at its lowest level since hitting $ 42,296 in the weekend crash before the month. After using financial support during the spread of COVID-19, Bitcoin has grown by around 500% since late 2019.
The Bloomberg Galaxy Crypto Index, which includes Ethereum, Litecoin, Bitcoin Money, and EOS, fell 5%. The cost of popular DeFi app tokens such as Uniswap and Aave has also fallen.
“The risk will continue with the investment required,” said David Donavedian, chief investment officer at CIBC Private Equity Management.
The recent volatility in cryptocurrencies comes at a time when financial markets are in turmoil. Rising interest rates are forcing central banks to tighten monetary policy, which could have a detrimental effect on the income engine that has driven the value of many assets.
The minutes of the Fed’s meeting announced on Wednesday suggest it may raise rates sooner or later. This further compounded the decline of the US stock market. The S&P 500 was down 1.9% and the tech-focused Nasdaq 100 was down 3.1%.
Crypto platform FRNT Financial Inc. “The Fed is hawkish,” said CEO and co-founder Stéphane Ouellette. “Cryptocurrencies have a long standing interest in increasing price and holding value, but the unconscious reaction of the cryptocurrency market often views them as risky assets.”
Other areas of the cryptocurrency industry are also suffering. After a year of data gains in bitcoin mining stocks, stocks have been hit by analysts who have rethought their thinking.
After the US government cleared the Bitcoin Futures ETF to go public in November, the price of Bitcoin hit an all-time high of nearly $ 69,000.