Bitcoin Sinks Below $33,000

Bitcoin is continuing its fast fall.

The top crypto asset reached a 10-month low Monday afternoon, trading below $33,000 for the first time since July 2021.

Bitcoin briefly hit around $32,750 and has since broken just above $33,000, trading just over 50% down from its November 2021 all-time high.

Per data from CoinGecko, Bitcoin has fallen by 14.7% in the past week while Ethereum has lost 15.9% of its value, and many other lower cap assets have dropped harder.

Arguably the biggest catalyst behind the recent volatility, the Federal Reserve’s move to hike interest rates, starting with a 50 basis points add-on last Wednesday, has marked a major shift in market conditions as investors face the challenge of navigating a rising rates environment rather than the money printing era that helped crypto and other assets soar in 2021.

The Crypto Fear & Greed Index, a popular indicator that measures confidence among crypto traders, is currently reading at “extreme fear.”

The vast majority of crypto assets are heavily down year-to-date, a fact worsened by the Fed’s planned tapering and rate hikes due to follow throughout this year.

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