Bitcoin Falls Below as Cryptos Tremble in the Face of a Rate Hike Threat


On Monday, cryptocurrency prices like Bitcoin reached all-time lows due to regulatory worries and because investors worldwide became wary of investing in risky assets as interest rate hikes seemed more likely around the world.

Bitcoin Declined at Its Lowest

Bitcoin, as known in the market to be the most valuable cryptocurrency, declined around 5% to a price of $18,387, the lowest level in three months. 

Ether, the second largest cryptocurrency, experienced a price decrease of 3% to a two-month low of $1,285, and it has experienced a price decrease of more than 10% in the previous twenty-four hours. The majority of the remaining smaller tokens were even more in the red. 

The Ethereum blockchain, which serves as the basis for the ether currency, received a significant update over the weekend known as the Merge. This upgrade modifies how transactions are processed and reduces the amount of energy that is consumed. 

The value of the token has decreased as a result of some speculation that remarks made by the chairman of the United States Securities and Exchange Commission last week signaled that the newly implemented structure could be subject to additional regulation. The commission also reversed the transactions revolving around the upgrade of Bitcoin. 

Regulatory in the Future

On the topic of the regulatory future, Matthew Dibb, the Chief Operating Officer of the cryptocurrency platform Stack Funds in Singapore, said, “It’s speculation as to what could or might not happen.” 

“Since the Merge, a lot of the hoopla surrounding the markets has died down,” he remarked. Concerning the tense situation in the world at the time, he added, “It’s truly been a sell-the-news type of event,” and predicted that the price of ether would reach $950 within the next few months. 

“When one considers both the fundamentals and the technical aspects of the situation at the moment, it does not look very promising. There is no quick positive catalyst to support these markets and bring in a significant amount of new money and liquidity. This is something that we have observed.”

Featured Image: DepositPhotos © Spaxiax

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About the author: Valerie Ablang is a freelance writer with a background in scientific research and an interest in stock market analysis. She previously worked as an article writer for various industrial niches. Aside from being a writer, she is also a professional chemist, wife, and mother to her son. She loves to spend her free time watching movies and learning creative design.