Several popular cryptocurrencies, including apex crypto Bitcoin BTC/USD, second-largest market cap crypto Ethereum ETH/USD and meme crypto Dogecoin DOGE/USD have experienced marked weakness in recent sessions.
Cryptocurrencies are experiencing volatility Tuesday amid raised fears of an economic slowdown as investors continue to assess last Wednesday’s Fed commentary and 75 bps rate hike. An economic slowdown could negatively impact discretionary spending.
Cryptocurrencies have also been seen by some investors as a speculative hedge against inflation and the Fed’s plans to curb inflation could weigh on the broader cryptocurrency sector.
The Federal Reserve raised its target fed funds rate by 0.75% last Wednesday to a new range of between 3% and 3.25%, its third 0.75% rate hike in four months. The Fed said it will continue with its previously announced plan to let Treasury securities and agency debt and agency mortgage-backed securities roll off its balance sheet on a monthly basis.
“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures,” the Fed said in a statement…Read More
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According to data from Benzinga Pro, over the trailing session:
- Bitcoin is lower by 5.23% to $19,052
- Ethereum is lower by 4.63% to $1,321
- Dogecoin is lower by 3.44% to $0.0604
Image and article originally from www.benzinga.com. Read the original article here.