Bitcoin fell below $ 40,000 for the first time since September and is heading for its worst annual start since the earliest days of the digital money alternative, Bloomberg reports.
The largest and oldest cryptocurrency fell by up 6 percent to $ 39,774 in New York, losing about 14 percent since the beginning of the year. The decline is the biggest for the beginning of the year since at least 2012.
“Cryptocurrencies are likely to remain under pressure as the Federal Reserve cuts liquidity injections,” said Jay Hatfield, chief executive of Infrastructure Capital Advisors. “Bitcoin could end 2022 for less than $ 20,000,” he predicted.
Bloomberg Intelligence analyst Mike McGlone says $ 40,000 is an important level of technical support for the digital currency. And cryptocurrencies themselves are a good indicator of the current reduction in appetite risk.
Meanwhile, technology stocks in the United States also opened in the red and continue to decline, and government bonds are also declining. The Nasdaq Composite erased nearly 2.5 percent in an hour from the start of trading. Last week, the index marked its biggest one-week decline since February last year. It has lost almost 8 percent since the beginning of the year.
Yastrebov Fed scared the markets, technology stocks recorded the worst day in almost a year
The central bank can raise interest rates earlier and faster, according to the minutes of the last meeting
–
Losses in technology stocks and cryptocurrencies come amid rising yields on 10-year U.S. bonds to 1.8 percent from 1.769 percent on Friday. The closing level at the end of last week was the highest since January 2020.
Rising interest rates are a sign that the Federal Reserve may raise interest rates in March and begin cutting its portfolio of bonds and other assets shortly thereafter.
Investors are also expecting data on US inflation on Wednesday. They will help them predict when and by how much the Fed will start tightening its policy. Consumer prices are projected to rise by more than 7 percent from a year earlier – for the first time since 1982.
Later this week, US giants will begin reporting their results from the last three months of 2021.
Meanwhile, Bloomberg material shows that more than a third of the new funds flowing to US ETFs are invested in funds that monitor financial stocks.
– .
