Bitcoin price today: Cryptocurrency drops the most in a month as the market turns to risk aversion

Bitcoin Price Today: The cryptocurrency fell for a fourth day as expectations of the biggest US interest rate hike in three decades dampened demand for riskier assets. The correlation coefficient between Bitcoin and US stocks has increased over the past 90 days as investors take on more downside risks with the Federal Reserve withdrawing its supposed pandemic-era stimulus measures. helped fuel the rise of cryptocurrencies. Altcoins like Ether, XRP, and Litecoin have fallen more than the original digital asset.

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Bitcoin fell to as low as $42,760 in early Asian trading, falling below $43,000 for the first time since March 24. It is down about 7.4% this year. The drop in the digital asset reflects a widespread sell-off in equities, with Japan’s Nikkei Index falling 1.8%.

Altcoins have fallen further due to their smaller market value and lower trading volume, which often leads to broader price movements. Cardano is down 9.1% over the past five days, while Solana is down 9.4%.

Bitcoin briefly surpassed $48,000 at the end of March to erase losses since the end of the year, fueling optimism that it will break out of the tight trading range it has been bogged down in. Ether has outperformed Bitcoin during the recovery due to its upcoming technical upgrade scheduled for later this year.

Earlier, billionaire crypto investor Michael Novogratz said that once the Fed pauses, Bitcoin could start growing again.

Novogratz, head of Galaxy Digital Holdings, predicts the central bank will remain “very hawkish for a while” due to high inflation and is likely to raise interest rates by 50 basis points soon. But as economic growth slows and the Fed backs down, “Bitcoin is going to the moon,” he said, echoing a popular cryptocurrency mantra.

Novogratz was speaking at the “Bitcoin 2022” conference in Miami, which began Wednesday with the unveiling of a bull statue in tribute to the city’s importance to the cryptocurrency and digital asset industry. digital. The event attracted more than 25,000 attendees.