Bitcoin and other cryptocurrencies fell on Wednesday, after stocks slipped into the red amid growing investor concerns about higher interest rates. Minutes from the last meeting of the Federal Reserve’s policy committee lie ahead as a key catalyst.
The price of Bitcoin has fallen 2% in the past 24 hours to $24,200, falling from recent highs above $25,000 and returning to levels of a week ago. Bitcoin’s gains so far this year have solidly consolidated the biggest digital asset above the key $20,000 mark, with the rise to…
Bitcoin
and other cryptocurrencies fell on Wednesday, after stocks slipped into the red amid growing investor concerns about higher interest rates. Minutes from the last meeting of the Federal Reserve’s policy committee lie ahead as a key catalyst.
The price of Bitcoin has fallen 2% in the past 24 hours to $24,200, falling from recent highs above $25,000 and returning to levels of a week ago. Bitcoin’s gains so far this year have solidly consolidated the biggest digital asset above the key $20,000 mark, with the rally to start 2023 as much as 50% higher to above $25,000 – the highest levels since last summer.
“Bitcoin fell after a false breakout above the August high,” said Yuya Hasegawa, analyst at crypto exchange Bitbank. “Bitcoin still manages to stop the fall above its previous low…improving technical sentiment may still support the price in the short term.”
Despite having surpassed
Dow Jones Industrial Average
and
S&P 500
in recent days, Bitcoin has fallen back to old ways, trading in sync with the stock market. Digital assets and stocks were largely correlated over the past year amid a tough macroeconomic backdrop of high inflation and rising interest rates, with investor concerns over the future of interest rates driving the latest rout.
The minutes of the latest meeting of the Fed’s interest rate committee will be released at 2pm Eastern, with investors likely to scrutinize the tone of central bank officials and focus in particular on concerns expressed about loosening economic conditions. Indications of a commitment to smaller interest rate increases of 25 basis points would also be welcome amid growing expectations of a larger increase in March.
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Beyond Bitcoin,
Ether
-the second biggest crypto loss 2% to $1650. Smaller cryptos or altcoins also fell, too
Cardano
down 2% and
Polygon
decreasing 5%. Memecoins were more mixed, with
Dogecoin
up less than 1%, however
Shiba Inu
reduction 2%.
Write to Jack Denton at [email protected]
