Photo illustrations of digital cryptocurrencies, Litecoin (LTC), Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) can be seen in Hong Kong on September 13, 2018.
Yoo Chun Christopher Wong | S3studio | Getty Images
Bitcoin prices plummeted Thursday night, but Ethereum prices also plummeted.
Bitcoin According to CoinDesk data, it has plummeted by more than 7% in the last 24 hours and was trading at $ 38,5774 at 11:19 EST.
etherThe second largest cryptocurrency by market capitalization has plummeted 8% in the last 24 hours. According to CoinDesk, it was trading at $ 2,860 at 11:20 pm ET after falling to $ 2,809.51 in the last 24 hours.
The decline in cryptocurrencies follows Thursday’s loss on Wall Street. Nasdaq fell almost 5% this week and the S & P 500 lost for the third straight week.
Rising interest rates caused investors to lose their position in higher-risk assets as the US Treasury’s 10-year yield soared earlier this week. Yields move in the opposite direction of prices.
The Federal Reserve has also announced plans to begin shrinking balance sheets, tapering bonds, and raising interest rates.
A common Bitcoin investment case is that it acts as a hedge against rising inflation as a result of government stimulus. Analysts say risk that is More hawkish Federal Reserve May remove the wind from Bitcoin sails.
However, as yields fell later in the week, Forex trading firm Oanda’s senior market analyst Edward Moya said, “Bitcoin reacts more aggressively to the Treasury’s yield reversal. It’s a little disappointing that I can’t see it. “
Bitcoin prices have fallen sharply since November, dropping more than 40% from the 2021 high of over $ 67,500.
In a note on Thursday, Oanda’s Moya predicts that Bitcoin could fall below $ 40,000 as the central bank of Russia proposed a ban on the use and mining of cryptocurrencies on Russian territory, and digital currencies “It poses a risk to financial stability and monetary policy sovereignty,” he insisted. “”
Russia is one of the top three countries in Bitcoin mining, he said.
— — CNBC’s Ryan Browne contributed to this report.