Bitcoin was approaching its lowest level since 2020 on Monday morning. Crypto investors appear to be bracing for global measures to counter record inflation.
Bitcoin’s value fell 6.7% on Monday to $18,500. Other cryptocurrencies suffered the same fate: Ether fell below $1,300 for the first time in two months. XRP and polkadot saw even bigger losses. The value of all 21,000 virtual currencies has fallen to some $900 billion.
Cryptocurrencies too unstable, investors prefer fixed rates
Investors are bracing for another rate hike from the US central bank to counter runaway inflation in the United States. The Federal Reserve will vote on this on Wednesday. In a rising rate environment, fixed rate investments become more attractive than more volatile and therefore riskier assets such as cryptocurrencies. The British central bank is also expected to raise its key rate this week.