Cryptocurrencies fell to fresh lows on Monday on regulatory concerns and as investors globally turned shy on risky assets with interest rate rises looming around the world.
Bitcoin, the biggest cryptocurrency by market value, fell about 5% to a three-month low of $18,387.
Ether, the second largest cryptocurrency, dropped 3% to a two-month low of $1,285 and is down more than 10% in the last 24 hours. Most other smaller tokens were deeper in the red.
A disappointing Consumer Price Index (CPI) early in the week caused Bitcoin, the largest crypto in terms of market value to start declining from a perch above $22,000, signaling that the U.S. central bank still had work to do to control inflation
Although a minimum 75 basis point increase is widely anticipated – a continuation of the Fed’s monetary hawkishness – investors will be eagerly watching the Federal Open Market Committee’s (FOMC) decision on a new interest rate hike this week.
The hype surrounding an upgrade of the Ethereum blockchain caused an increase in the price of ether since mid-June, but now that the upgrade is complete, it is quickly declining. Investors are preparing for volatility as a result of the Federal Reserve’s anticipated this week’s big interest-rate boost to combat pricing pressure.
The pressure on a variety of assets is evidence of this: global stocks are getting closer to eradicating a rise since mid-June, which for many was a bear-market rally. US equities futures Monday was down while the dollar index increased.
