Bitcoin Lingers Near Lows as Central Banks Ready Stimulus Cuts

While Bitcoin lingers near recent lows after tumbling from its November all-time high, many crypto investors see an overarching theme that could be behind some of the recent volatility: prospects of reduced central-bank stimulus.

Government and central-bank stimulus efforts that have been underway for more than a year are starting to get wound down as economies globally attempt to emerge from the pandemic. Digital assets have come under pressure in that environment, with Bitcoin losing roughly a third of its value over the past month, a period that coincides with the Federal Reserve’s announcement that it might speed up its stimulus-withdrawal efforts.