Illustration of Digital Cryptocurrencies, Litecoin (LTC), Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) seen on September 13, 2018 in Hong Kong, Hong Kong.
Yu Chun Christopher Wong | S3studio | beautiful pictures
The price of bitcoin plummeted on Thursday night, while the price of ether also plunged.
Bitcoin plummeted 8% over the past 24 hours and was trading at $38,524 as of 10:56 p.m. ET, according to CoinDesk data.
Ether, the second-largest cryptocurrency by market capitalization, is down more than 9%. It was trading at $2,828 as of 10:57 p.m. ET, according to CoinDesk.
The cryptocurrency’s drop followed Wall Street’s losses on Thursday. The Nasdaq is down nearly 5% this week, and the S&P 500 is entering its third straight week of losses.
As yields on 10-year US Treasuries spiked earlier this week, rising interest rates prompted investors to abandon their positions in riskier assets. The Federal Reserve also said it plans to begin reducing its balance sheet, as well as slashing bonds and raising interest rates.
A common investment case for bitcoin is that it acts as a hedge against rising inflation due to government stimulus, but Analysts are saying risk It’s a a more hawkish Federal Reserve can catch the wind from the sails of bitcoin.
