Bitcoin retreats to lowest level in 3 months

On Monday, Bitcoin dropped by some 5% to an intraday low of $18,276, reaching its lowest level since June 2019. It was last down 2.9% at $19,091.00.

Bitcoin is down 7.2% in the current month and on pace for the second straight negative month after plunging 15% in August.

Ether also fell a similar 5% to $1,281 a piece, on Monday, hitting its lowest level since July 15. It was last lower by 1.9% at $1,354.86. It’s currently down 17% this month, on track to post its worst month since June.

Risk assets have been under massive pressure as the Fed is expected to stick to its aggressive tightening policy. The US central bank is widely expected to approve this week a third consecutive 0.75 percentage point interest rate increase that would take benchmark rates up to a range of 3%-3.25%.

Ether has hugely outperformed bitcoin since both cryptocurrencies formed a bottom in June 2022. Ether’s superior gains have come as investors anticipate a major upgrade to the ethereum blockchain known as “the merge.”