(Bloomberg) – Bitcoin fell to the lowest level since its sudden slide in December, as mounting expectations of rising borrowing rates weigh on some of the best-performing assets in recent years.
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The largest cryptocurrency by market value fell as much as 5.3% to $ 43,764. That pushed the price to the lowest level since weekend crash early last month. Bitcoin has risen more than 500% since the end of 2019 in the wake of stimulus measures implemented during the covid-19 pandemic.
The Blomberg Galaxy Crypto Index, which includes ethereum, litecoin, bitcoin Cash and EOS, plunged regarding 5%.
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Digital coin has fallen more than 20% over past month
“It’s a speculative investment and volatility will be constant,” David Donabedian, chief investment officer at CIBC Private Wealth Management, said by phone.
The recent shifts in cryptocurrencies come amid a period of volatility for financial markets. Rising inflation is forcing central banks to tighten monetary policy, threatening to reduce the liquidity tailwind that sent a wide range of assets higher.
US stocks deepened losses following 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 high-tech Nasdaq 100 fell 3.1%.
Other sectors of the crypto world are also under pressure. The mining stocks Bitcoins took a beating when analysts reconsidered their outlook following a record year.
In early November, bitcoin hit a record value of nearly $ 69,000 following US regulators cleared bitcoin exchange-traded funds.
Original Note:
Bitcoin Declines to Lowest Level Since December’s Flash Crash
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