According to a Bloomberg report, bitcoin has fallen to its lowest level since the December flash crash as rising expectations of rising lending rates weighed on some of the best-performing assets in the past few years.
The largest cryptocurrency by market cap fell 6% to $43,451. This pushed the price to its lowest level since touching $42,296 during the weekend crash earlier last month. Bitcoin has gained almost 500% since the end of 2019 in the wake of stimulus measures taken during the COVID-19 pandemic. The price has fallen to its lowest since touching $42,296 during the weekend crash at the beginning of last month. Bitcoin has gained almost 500% since the end of 2019 in the wake of stimulus measures taken during the COVID-19 pandemic.
The Blomberg Galaxy Crypto Index, which includes Ethereum, Litecoin, Bitcoin Cash and EOS, fell nearly 5%. Tokens from popular DeFi applications including Uniswap and Aave have declined.
The recent volatility in cryptocurrencies comes during a volatile period for the financial markets. Rising inflation is forcing central banks to tighten monetary policy, threatening to ease the liquidity tailwind that has lifted a wide range of assets.
US stocks tumbled minutes after the Federal Reserve flagged off the possibility of an earlier and sharper interest rate hike. The S&P 500 fell 1.9%, led by real estate stocks, while the tech-heavy Nasdaq 100 fell 3.1%.
Other areas of the crypto world are under pressure as well. Analysts rethink their outlook after a record-breaking year for bitcoin mining stocks.
After the US regularly allowed bitcoin futures-based exchange-traded funds, bitcoin climbed to a record nearly $69,000 in early November.
Never miss a story! Stay connected and informed with Mint.
download
Our App Now!!
,