Bitcoin was approaching its lowest level since 2020 on Monday morning. Cryptocurrency investors seem to be preparing for global measures to counter record inflation.
Bitcoin’s value fell 6.7% on Monday to $18,500. Other cryptocurrencies suffered the same fate: Ether fell below $1,300 for the first time in two months. XRP and polkadot saw even bigger losses. The value of all 21,000 virtual currencies has fallen to about $900 billion.
Cryptocurrencies are very unstable, investors prefer fixed prices
Investors are preparing for another rate hike from the US central bank to counter hyperinflation in the US. The Federal Reserve will vote on this on Wednesday. In an environment of rising prices, fixed-rate investments become more attractive than more volatile assets and therefore riskier like cryptocurrencies. The BoE is also expected to raise its key interest rate this week.