The crypto market is plunging after a negative day on Wall Street, sending Bitcoin price to a 3-month low.
A few hours ago, the largest cryptocurrency was trading in a range above $46,000. Starting around 19:40 UTC, its price dropped to $45,000.
The price continued to fall for the next two hours, with the current price at $43.6k at press time.
Events are not good for the bulls. Data of Coinglass$500 million in crypto has been liquidated in the last 4 hours alone.
The price drop coincided with a 1.9% drop on the S&P and a 3% decline on the NASDAQ.
The market-wide decline could be fueled by rumors that the Fed may start raising interest rates as early as this year to combat inflation. US inflation was 6.8% in November 2021 – the highest level in nearly 40 years.
Bitcoin has reacted to inflation statistics in the past, which is recognized as an inflation hedge. In November, Bitcoin hit an all-time high after October’s inflation numbers were released.
The top cryptocurrency has been stuck in limbo since falling below $50,000. It now appears to have broken out of its range, further heading towards the downside.