Bitcoin slides about 7%, other cryptocurrencies drop after global stocks fall on hawkish Fed minutes

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Bitcoin slides 7%, other cryptocurrencies drop after global stocks fall on hawkish Fed minutes

A representations of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken May 19, 2021.and other cryptocurrencies fell sharply on Thursday as hawkish minutes from the Federal Reserve's December meeting hit global risk assets.

Bitcoin was trading at just below $43,200 at 2:59 a.m. ET on Thursday, down nearly 7% from the 24 hours previous, according to CoinDesk data. It fell as low as $42,503.88 in the last 24 hours, the lowest level in more than a month.The crypto sell-off comes after stocks fell on Wednesday following the

in which the central bank indicated it would dial back its supportive monetary policy, including reducing the amount of bonds it holds.Meanwhile, the benchmarkGrowth assets such as technology stocks tend to be hit when rates rise, as future earnings becomes less attractive to investors when yields are higher. That sentiment has filtered through to cryptocurrencies, which are seen as risker assets.

"Overall, I think the global markets have shown weakness in light of the recent Fed moves to raise interest rates. Hence, I do think the drop yesterday is quite correlated. We've seen U.S. markets fall yesterday and as a result, all other risk asset classes fared equally poorly including crypto," said Vijay Ayyar, vice president of corporate development and international at cryptocurrency exchange Luno.

"Specifically with regard to Bitcoin and crypto, the last 4 weeks have seen some weak price action owing to a lack of interest/demand, holiday season and potentially similar factors."

 

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Source: Reuters - 🏆 2. / 97 Read more »