Bitcoin falls for the third session and records the largest drop in a month due to risk aversion

Bitcoin fell for a third session as expectations of the largest interest rate increase in the United States in three decades dented demand for riskier assets.

Correlation coefficient between bitcoin and stocks United States of America It has risen over the past 90 days as investors become more risk-averse due to the withdrawal of pandemic-era stimulus by the Federal Reserve, which is credited with helping push cryptocurrencies higher. Altcoins like ether, XRP, and litecoin are down more than the original digital assets.

Bitcoin is down as much as 5.8% at $43,210, its biggest intraday drop since March 10. It is down about 5.9% this year.

Altcoins have fallen further due to lower market capitalization and lower trading volume, which usually leads to wider price swings. Cardano shares are down 8.15% and Solana 9.6%.

Bitcoin broke through the top of its narrowest trading range between $30,000 and $50,000 earlier this week, but traders were concerned about another false move. Ether has been outperforming Bitcoin during the rally due to the next technical update scheduled for later this year.

Earlier, billionaire investor Michael Novogratz said that once the Federal Reserve stops, bitcoin can start to take off again.

Novogratz, who runs Galaxy Digital Holdings, forecast that the central bank under Jerome Powell will remain “very tight for some time” due to higher inflation, and is likely to raise interest rates by 50 basis points soon. But as the economy slows and the Federal Reserve slumps, Bitcoin He will reach the moon,” he said, repeating a famous codeword.

Novogratz was speaking at the “Bitcoin 2022” conference in Miami, which kicked off Wednesday with the unveiling of a statue of a bull that commemorates the city’s preference for cryptocurrency and the digital asset industry. The event attracted more than 25,000 participants.