Bitcoin falls to its lowest level since December crash

(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%.



Digital coin has fallen more than 20% over past month


© Bloomberg
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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