Bitcoin was approaching its lowest level since 2020 on Monday morning. Crypto investors seem to be gearing up for a global response to record inflation.
The value of Bitcoin fell 6.7% on Monday to $18,500. The same fate befell other cryptocurrencies: Ethereum fell below $1,300 for the first time in two months. XRP and polkadot suffered even bigger losses. The value of all 21,000 virtual currencies has dropped to around $900 billion.
Cryptocurrencies are too unstable, investors prefer fixed rates
Investors are gearing up for another rate hike by the US central bank to counter runaway US inflation. The Federal Reserve will vote on this on Wednesday. In a rising rate environment, fixed-rate investments become more attractive than more volatile and therefore riskier assets such as cryptocurrencies. The British central bank is expected to raise its key rate this week.