The crypto market is tanking following a negative day on Wall Street, taking Bitcoin’s price to lows it hasn’t seen in 3 months.
Hours ago, the primary cryptocurrency was trading in the upper $46k range. Beginning at around 19:40 UTC, its price collapsed down to $45k.
Prices continued to fall over the next two hours, with prices now below $43k at the time of writing.
The event hasn’t been kind to bulls. Coinglass data shows $500 million in crypto liquidations having taken place over the last 4 hours alone.
The price plunge has coincided with a 1.9% fall on the S&P, and a 3% fall on the NASDAQ.
The market-wide dip may have been spurred by resurging rumors that the Fed could start raising interest rates early this year to combat inflation. US inflation was 6.8% this November – a nearly 40-year high.
Bitcoin has moved in reaction to inflation statistics before, given its recognition as an inflation hedge. In November, Bitcoin touched an all-time high after October’s inflation numbers were released.
The leading crypto was stuck in limbo since a liquidation cascade last month down to $50k. It now appears to have broken free of its range, further towards the downside.
Bitcoin 24hr Price. Source: Tradingview