Crypto Altcoins Lead Slide After Fed Raises Possibility of Rate Hikes
- Bitcoin drops below $25,000 for the first time since March
- Ether, XRP, Litecoin lead slump of alternative tokens
This article is for subscribers only.
Prices in the cryptocurrency market slumped across the board after the Federal Reserve signaled the possibility of resuming its interest-rate hikes after pausing its tightening cycle.
“The reaction lines up very closely with what was seen in other risk assets, in what is currently being interpreted by the markets as a marginally more hawkish than expected Fed,” said Stephane Ouellette, chief executive of FRNT Financial Inc., an institutional platform focused on digital assets. “As in most markets, there are some that speculate on breakouts around these events. I would imagine some of those short term trades unwound, leading to the sell-off and bounce.”