Bitcoin Slips Below $27k As Inflation And Rate Hike Worries Increases

Twitter icon  •  Published 9ヶ月前  •  Hassan Maishera

Bitcoin dropped below the $27k level once again after Cleveland’s Federal Reserve Bank president revealed that there is a likelihood of another rate hike soon.

TL;DR

  • 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.

 

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.