Bitcoin has wiped out its earlier gains after slipping below the $27k level once again.
Investors are worried about rising inflation figures in the United States and another possible rate hike.
Bitcoin Drops Below $27k Again
The cryptocurrency market has lost the gains it garnered earlier this week. The leading cryptocurrency has lost more than 1% of its value over the last 24 hours and is now trading below the $27k level once again.
The bearish trend comes after Cleveland’s Federal Reserve Bank president, revealed that there is a likelihood of another rate hike soon.
The news threw investors off guard, resulting in the market recording losses. At press time, the total cryptocurrency market cap stands at $1.13 trillion, down by less than 1% over the last 24 hours.
A rate hike could see the financial markets, including cryptocurrencies, suffer short-term losses. The Federal Reserve has increased interest rates in recent months as it continues to tackle rising inflation in the United States.
In addition to the rate hike news, the release of discouraging manufacturing data from China added to the bearish sentiment of Bitcoin and other risk assets.
Ether, the second-largest cryptocurrency by market cap, is down by 1% over the last 24 hours and is currently trading at $1,858 per coin.