Crypto markets: BTC price falls below $42,000 as Fed hints at interest hike

Source: CNet News

“Bitcoin’s voyage to the moon has once again encountered turbulence. The cryptocurrency on Friday morning fell below $42,000 for the first time since late September. It has dropped over 12% in the past 7 days, one of many cryptocurrencies to have tumbled in recent days. Ether, which held at around $4,000 for much of December, briefly dipped below $3,200 on Friday morning. It’s difficult to explain cryptocurrency price movements with definite pr[e]cision, but the market’s downward slide appears to be tied to the Federal Reserve. To combat rising inflation rates, the Fed may raise interest rates sooner than previously planned, according to minutes from a Federal Reserve meeting. The prospect of rising borrowing rates impacted most markets, crypto or otherwise. The Nasdaq is down 3.3% since Wednesday, while the Dow Jones Industrial Index dropped just over 1%. (01/07/22)