- Bitcoin and other cryptocurrencies fell sharply on Thursday as hawkish minutes from the Federal Reserve’s December meeting hit global risk assets.
- Expectations of less monetary policy support and higher interest rates sent stocks lower on Wednesday. The sell-off filtered through to cryptocurrencies.
Bitcoin 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 $42,739.52, down more than 7% from the 24 hours previous, according to Coin Metrics data. It fell as low as $42,503.88 in the last 24 hours, the lowest level in more than a month.
Other cryptocurrencies fell too. Ethereum dropped nearly 12% to $3,335.99 while solana sank 12% to $146.84.
The crypto sell-off comes after stocks fell on Wednesday following the release of minutes from the Fed’s December meeting in which the central bank indicated it would dial back its supportive monetary policy, including reducing the amount of bonds it holds.
The Fed also indicated that it may have to raise interest rates sooner than expected.