Bitcoin has tumbled to its lowest level since its collapse in December as rising expectations of higher borrowing rates weigh on some of the best-performing assets over the past few years, Bloomberg reports.
The largest cryptocurrency by market capitalization is down 6% to $43,451. That pushed the price to its lowest level since it touched $42,296 over the weekend at the beginning of last month. Bitcoin is up nearly 500% since the end of 2019 following the stimulus measures put in place during the COVID-19 pandemic, with the price hitting its lowest level since touching $42,296 during the weekend crash early last month. Bitcoin is up nearly 500% since the end of 2019 following the stimulus measures put in place during the Covid-19 pandemic.
The Bloomberg Galaxy Crypto Index, which includes Ethereum, Litecoin, Bitcoin Cash and EOS, is down about 5%. The tokens of popular DeFi apps including Uniswap and Aave have been rejected.
The recent volatility in cryptocurrency comes amid a volatile period for the financial markets. Rising inflation is forcing central banks to tighten monetary policy, threatening to reduce the liquidity tailwind that has lifted a wide range of assets.
US stocks deepened their losses minutes after the Federal Reserve signaled the opportunity to raise interest rates earlier and faster. The S&P 500 fell 1.9%, led by real estate stocks, while the tech-heavy Nasdaq 100 fell 3.1%.
Other sectors of the crypto world are under pressure as well. Bitcoin mining stocks took a hit as analysts reconsidered their prospects after a record year.
Bitcoin surged to a record high of nearly $69,000 in early November after US regulators allowed bitcoin futures-based exchange-traded funds.
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