Bitcoin, ether tumble after Fed minutes show talk of quicker end to easy policy stance

Major cryptocurrencies fell on Wednesday, minutes after the Federal Open Market Committee’s December meeting showed that some officials had extensive discussions about how to more quickly move away from its current easy monetary stance by raising rates and shrinking its $8.67 trillion balance sheet.

Bitcoin BTCUSD
It dropped more than $2,500 after the minutes were released at 2 PM ET. This is added to the cryptocurrency’s drop of nearly 6% in the past 24 hours, having recently traded at around $43,466, according to CoinDesk.

It is down 7.5% in the past 24 hours, and was recently trading at around $3,526.

Most of the major cryptocurrencies are declining. Solana Solosed
It was trading 9.3% less than 24 hours ago at around $153. Terra fell 8.6% to around $77. polygon matic USD
It posted a 9.5% loss at around $2.2. DOGEUSD currency meme
It lost 7.2%, trading at around $0.16. Another dog-themed symbol is Shiba Inu SHIBUSD
It was trading down 8% at around $0.00003.

Despite the common narrative among bitcoin supporters that the cryptocurrency can be used as a hedge against inflation, bitcoin has recently been traded alongside stocks and other risky assets.

US stocks closed sharply lower on Wednesday. Dow Jones Industrial Average DJIA
It fell 392.54 points, or 1.1%, to close at 36407.11, the worst daily percentage drop since Dec. 20, according to market data from Dow Jones. S&P 500 SPX Index
It fell 92.96 points, or 1.9%, to close at 4700.58, the largest daily percentage drop since November 26.
It lost 522.54 points 3.34% to close at 15100.17, the largest daily percentage drop since February 25, 2021.

Read: blame the Fed? Tech stocks are off to the worst start to a calendar year since the 2008 financial crisis.