Bitcoin fell below $25,000 on Monday, its lowest level in 18 months, as investors shunned risky assets as global markets tumbled.
The world’s most popular cryptocurrency plummeted around 10% to settle at $24,692 in London morning trading, hitting December 2020 levels.
Fears of a sharp rise in US interest rates and a recession rattled global markets on Monday, following the release of higher-than-expected US inflation figures on Friday.
“Correlation Between Stock Markets and Bitcoin Continues” to Gain Strengthsaid AvaTrade analyst Naeem Aslam.
The value of the virtual drive has plummeted 65% since reaching an all-time high in November 2021.
By 2021, the fledgling sector had attracted more and more players from traditional finance, whose risk appetite was fueled by loose policies from central banks around the world, the AFP news agency noted.
But the rate hike by the US Federal Reserve (Fed), in its attempt to combat runaway inflation, is weighing on markets.
