Bitcoin is again crawling close to last month’s low of $42.2K
Within the last 24 hours premier cryptocurrency Bitcoin has depreciated by more than seven per cent, dipping from its high place at over US$46,500 down to below US$43,000 according to CoinMarketCap.
The slump is assumed to have been influenced by the release of the minutes from a US Federal Reserve meeting that revealed the possibility of higher interest rates to combat inflation. US inflation sat at 6.8 per cent in November 2021, which is close to a 40-year high.
S&P 500 and Nasdaq also both fell by 1.9 per cent and 3.1 per cent respectively as the Federal Reserve minutes were released.
This pattern of reaction by Bitcoin to conversations around inflation has occurred before, earning the coin the badge of an “inflation hedge” in October 2021 according to CryptoPotato. This most recent plunge threatens to undermine this title as it reflects the influence interest rates debate has over the crypto market.