Bitcoin falls below $20,000 on Friday

The bitcoin price fell below $20,000 amid concerns about a large interest rate hike by the Federal Reserve (Fed) at its monetary policy meeting next week. The bitcoin price fell 1.12% to $19,934.65.

The Dow fell more than 400 points as investors feared the Fed’s accelerated rate hike could plunge the economy into a severe recession.

CME Group’s latest FedWatch tool shows that investors are 80% expect the Fed to raise rates by 0.75% to 3.00-3.25% at its September 20-21 meeting, and 20% expect the Fed to raise rates by 1.00%.

If the Fed raises rates by 0.75% in September, it will be the third time it has raised rates by 0.75%, having already raised 0.75% in June and July. And if the Fed raises rates by 1.00%, it would be the largest rate hike in 40 years.

In November 2021, bitcoin surpassed $69,000, its highest level in history, before collapsing below $20,000 in June 2022 amid fears that the Federal Reserve’s accelerated rate hikes and balance sheet reductions would strain market liquidity and lead to a recession in the U.S. economy.

The Spot Market is Open

Saturday, September 17, 2022

Crypto
Updated at
USD
Price

Change

%Change
14.00 BTC19,831.74+183.93+0.94
14.00 ETH1,430.52-19.39-1.34
14.00 LTC56.06+0.38+0.68
14.00 BNB276.24+1.55+0.56
14.00 XRP0.35+0.02+4.84
14.00 ADA0.48+0.02+3.32
14.00 DOT6.99+0.15+2.19
14.00 DOGE0.06+0.00+1.44
14.00 UNI5.89+0.08+1.43
14.00 LINK7.99+0.27+3.50

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