Bitcoin fell the most in about a week as hawkish rhetoric from Federal Reserve officials and further signs of an aggressive US regulatory clampdown stirred caution.
(Bloomberg) — Bitcoin fell the most in about a week as hawkish rhetoric from Federal Reserve officials and further signs of an aggressive US regulatory clampdown stirred caution.
The largest digital token slid as much as 4.8% and was trading below $24,000 as of 7:40 a.m. Friday in London. Smaller tokens such as Ether, Avalanche and Binance Coin also retreated.
The Securities and Exchange Commission sued the company behind TerraUSD in the latest regulatory step in the US. TerraUSD was a stablecoin whose collapse in 2022 kicked off an industry crisis and a number of high-profile bankruptcies.
Meanwhile, two of the Federal Reserve’s most hawkish policy makers signaled they may favor returning to bigger interest-rate hikes in the future. The comments sapped risk appetite across global markets.
The trade-off between risk and reward on Bitcoin, which briefly jumped past $25,000 on Thursday, is “unfavorable” now, said Katie Stockton, founder of Fairlead Strategies LLC, a research firm focused on technical analysis.
Bitcoin has rebounded more than 40% this year from a rout in 2022. Skeptics contend the bounce is vulnerable to the risk of higher for longer rates.
For crypto market prices: CRYP; for top crypto news: TOP CRYPTO.
–With assistance from Akshay Chinchalkar.
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