Crypto markets fall again ahead of possible US rates rise
Bitcoin slipped to a low of $45,000 on Monday, down almost 10 per cent from its weekend highs of more than $50k. It’s since climbed back to around the $47k level, but can it hold or are there more sharp price movements in store?
The sudden drop yesterday marked Bitcoin’s worst daily performance since December 4, with analysts speculating that the sell-off is related to a US Federal Reserve decision on interest rates later this week.
The Fed is due to announce on Wednesday whether it will wind down its bond purchases and start raising interest rates next year. Stock markets also fell on the news, with a rate hike giving people somewhere else to put their assets rather than the stock and crypto markets.
The overall crypto market is down around five per cent in the last 24 hours, and is currently valued at about $2.14 trillion. Ethereum fell another six per cent, even further below the $4,000 level that it held for so long before the weekend, while almost all other major cryptocurrencies have fallen similar amounts.
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