The biggest crypto Bitcoin tumbled to below $43,000 on Thursday as global stocks also edged lower following the Federal Reserve minutes that pointed at a sooner than expected rate hike.
- Bitcoin was down more than 8% in the last twenty-four hours at 4:56 a.m. ET, trading at $42,650, while Ethereum fell more than 12% to trade at $3,341.
- The weak sentiment in global markets also reflects Federal Reserve hints at bond tapering in a move to tighten the economy.
- Global stocks, led by growth technology shares, fell, with Nasdaq 100 down more than 3% on Thursday. The benchmark 10-year Treasury yields climbed up to 1.725%.
- Vijay Ayyar, Luno crypto exchange’s VP of corporate development and international, says the fall in global stocks shows a positive correlation to those of the US. He says crypto, being a risky asset class, also fell on the sentiment.
Global assets, especially technology stocks, are hit by higher rates, as their future earnings get less attractive when yields rise. BTCUSD is down 1.69%, NASDAQ 100 is down -3.12%, DAX is down -1.10%.