At the last meeting, Fed members expressed concern about the rate of inflation and suggested that further rate hikes may be necessary in the future unless conditions change. This caused the cryptocurrency prices to drop accordingly CNBC.
Today, bitcoin fell more than 2 percent to $28,375, the weakest level since the end of June.
– Although inflation itself can be an argument for growth in cryptocurrencies, other aspects follow inflation, such as investors looking for less risky alternatives for fear of recession, and avoiding what she considers bitcoin, i.e. risky assets, says Silvia Jablonski, Chief Investment Officer at Defiance ETFs.
Minutes from the July meeting warned that central bank officials see the risk of increasing inflation which could lead to an increase in interest rates. At this meeting, the Fed raised its benchmark interest rate to the highest level in more than 22 years. The markets did not think the central bank would make more changes to interest rates this year. In response, the stock market fell for the second day in a row on Wednesday, and the yield on the 10-year US Treasury bond reached its highest level since 2008.
A number of the largest cryptocurrencies such as Ethereum, Binance, XRP, Solana and Polygo also fell on Thursday.
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