Bitcoin fell below $19,000 amid concerns about the Federal Reserve (Fed) rate hike.
Bitcoin fell 3.52% to $18,904.39.
The Dow fell more than 300 points as investors feared the Fed’s accelerated rate hike could plunge the economy into recession.
CME Group’s latest FedWatch tool shows that investors were 82% confident that the Fed would raise rates by 0.75% to 3.00-3.25% at its September 20-21 meeting, and 18% confident that the Fed would 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 on fears that the Fed’s accelerated rate hikes and balance sheet cuts would strain market liquidity and bring the U.S. economy to the brink of recession.
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Wednesday, September 21, 2022