As the dollar gains, Bitcoin stock (BTC-USD) drops to a 3-month low, highlighting risk aversion.
A notable September drop is occurring in the cryptocurrency markets due to the dollars continued advances versus other major currencies and rising interest rates.
Bitcoin Stock: Market Evaluation
As global markets withdrew from riskier assets ahead of a busy week of central bank rate announcements and another upward rise for the dollar, bitcoin stock (BTC-USD) values plunged to a three-month low in overnight trade.
Fiat currencies are outpacing gains in cryptocurrencies as markets become more risk-averse. The Federal Reserve expected to raise its key Fed Funds rate by 75 basis points on Wednesday, marking its third consecutive disproportionate hike. In addition, Policymakers at the Bank of England, Swiss National Bank, and Bank of Japan are expected to either follow suit with increases or echo the hawkish rhetoric.
Reports of greater monitoring of FTX have also exacerbated the recent doom in the industry. Londons Financial Times reports that the U.K.s Financial Conduct Authority has warned the operator of the cryptocurrency exchange for offering services without the appropriate permission.
The FCA said in a statement that almost all businesses and people delivering, marketing or selling financial services or products in the UK have to be licensed or registered by us. We have not authorized this company, and it is primarily focusing on UK residents.
At $18,407.20 per coin, bitcoin stock (BTC-USD) prices were last spotted down 5.2% for the day, bringing their year-to-date fall to almost 61.4%.
Following the merge of the two blockchains that support the second-largest digital currency in the world last week, prices were also fluctuating, dropping 3.3% to a two-month low of $1,2910.18 per.
Early Monday trade saw the U.S. dollar index move 0.25% higher and close to its most recent 20-year high, changing hands at 110.095 versus a basket of six global peer currencies, putting the dollars year-to-date gain at almost 14.7%.
Shares of Robinhood Markets (HOOD) were down 0.6% at $10.19 per while Coinbase Global (COIN) shares were down 5.66% to $69.81 per share in pre-market trading.
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Author: Okoro Chinedu
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