Bitcoin falls to 21-month low on Strategy, rate-hike fears
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Listen to this article in summarized format Bitcoin dropped as much as 1.5% to $57,742 in Asia trading on Wednesday, its lowest level since Sept. 17, 2024, before steadying by 10 a.m. in Singapore. Hawkish comments by US Federal Reserve policymakers are fueling expectations for higher rates, encouraging capital away from assets like cryptocurrencies that don’t pay a yield. Investors pulled more than $4 billion from US-listed Bitcoin exchange-traded funds in June, the most since they launched two years ago. In addition, investors have reversed an initial vote of confidence in Michael Saylor’s financing overhaul at Strategy Inc., raising fresh concerns that one of the biggest buyers of Bitcoin may no longer be a consistent source of demand. While investors initially welcomed the prospect of stock buybacks and a larger cash reserve, the focus quickly shifted to Strategy’s newfound flexibility to sell Bitcoin and prioritize balance-sheet management over relentless accumulation. Bitcoin has now fallen more than 50% from its record high above $126,000 in October last year and is below its 200-week moving average, a technical level that can signal a prolonged bear market. At his first press conference as Fed chairman last month, Kevin Warsh made clear the central bank won’t tolerate high inflation, spurring expectations for higher rates and boosting the US dollar. Other Fed officials have also recently indicated the possibility of tighter policy. Federal Reserve Bank of Cleveland President Beth Hammack told CNBC Tuesday that the central bank may need to raise rates to bring inflation down to its 2% goal. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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