Bitcoin, like stocks, reacted positively to the Fed’s announcement of a base rate hike. During Wednesday, its value approached 40 thousand dollars, but in the following days there was a rather significant sale.
Bitcoin crash
The oldest and most widely used cryptocurrency lost more than a tenth of its value in less than 48 hours. Bitcoin’s decline has stalled at around $35,300. However, the crash continued over the weekend and on Sunday Bitcoin was selling for around $34,500.
According to experts, the current volatility of Bitcoin is due to growing uncertainty among investors who are also trying to be cautious. In addition, the value of Bitcoin has followed the stock markets in recent months. They reacted to the US central bank’s base rate hike on Wednesday by rising. However, during Thursday, investors began to take profits and stocks began to fall sharply across all three major segments of the exchange.
Other cryptocurrencies are going down
Similar to Bitcoin, other well-known cryptocurrencies went down. The price of the Ehtereum virtual coin rose to within sight of $3,000 on Wednesday and Thursday, only to fall about seven per cent by Thursday evening. On Friday afternoon, Ethereum was selling for around $2,600, and on Sunday the price dropped below that level.
