Fed’s Meeting Pulls Bitcoin Lower

The more speculative assets have dropped ahead a host central bank meetings, as markets began to consider a world of tighter monetary policy.

Bitcoin was not an exception, falling below USD 47,000, more than 30% off its all-time high reached just last month.

Bitcoin tumbled 3.77 per cent, while Ethereum was down 5.36 per cent. Dogecoin lost 4.19 per cent and Shiba Inu 5.60 per cent.

With the US Federal Reserve expected to start tapering the stimulus programme after the COVID pandemic hit, major cryptocurrencies took a beating.

The Fed’s money-printing program had inspired many investors to buy bitcoin as a hedge against inflation. So, if the Fed tilts the hawkish on inflation, Bitcoin might look incrementally less attractive as a hedge against the US dollar’s debasement.

Bitcoin, the oldest cryptocurrency in the market, tumbled by 3.77 per cent to trade at USD 46,922.23, its market cap now stands at USD 8,86,74,30,13,488. Its closest rival Ethereum is down by 5.36 per cent and is now trading at USD 3781.93. Its market cap is now USD 4,48,32,55,20,043.


Binance Coin is down by 5.69 per cent and is currently trading at USD 525.74, while Cardano (ADA) crashed by 5.29 per cent to trade at USD 1.23 and Solana is down by 7.99 per cent to USD 154.22.