Bitcoin has fallen to the lowest level since its flash crash in December as rising expectations of higher borrowing rates weighed on some of the best-performing assets in recent years, Bloomberg reports.
The largest cryptocurrency by market value fell 6% to $ 43,451. This pushed the price down as it hit $ 42,296 in the weekend crash early last month. Bitcoin has jumped about 500% since the end of 2019 following the stimulus measures put in place during the Covid-19 pandemic. Bitcoin has jumped by around 500% since the end of 2019 following the stimulus measures put in place during the Covid-19 pandemic.
The Blomberg Galaxy Crypto Index, which includes Ethereum, Litecoin, Bitcoin Cash, and EOS, fell around 5%. Tokens for popular DeFi apps, including Uniswap and Aave, have declined.
The recent fluctuations in cryptocurrencies come in a period of volatility for the financial markets. Soaring inflation is forcing central banks to tighten monetary policy, threatening to reduce the tailwind of liquidity that has lifted a wide array of assets.
US stocks increased their losses after Federal Reserve minutes signaled the possibility of earlier and faster interest rate hikes. The S&P 500 fell 1.9%, led by real estate stocks, while the tech-rich Nasdaq 100 slipped 3.1%.
Other sectors of the crypto world are also under pressure. Bitcoin mining stocks were beaten as analysts reconsider their outlook after a record year.
Bitcoin had hit a record high of nearly $ 69,000 in early November after U.S. regulars cleared exchange-traded funds based on Bitcoin futures.
Never miss a story! Stay connected and informed with Mint. Download our app now !!
