Bitcoin drops to 3-month low as dollar highlights risk aversion

Bitcoin drops to 3-month low as dollar highlights risk aversion

Bitcoin prices fell to a three-month low in overnight trading as global markets retreated from risky assets ahead of an active week of central bank interest rate decisions and another higher move in the US dollar.

With the Federal Reserve expected to boost its key federal funds rate by 75 basis points on Wednesday, its third straight increase, policymakers at the Bank of England, the Swiss National Bank and the Bank of Japan are expected to follow with either increases or echoes. Hard rhetoric, fiat currencies outpace gains in cryptocurrencies as markets become increasingly risk averse.

Reports of increased scrutiny of FTX have also added to the recent gloom for the sector, with the Financial Times in London noting that the UK’s Financial Conduct Authority has issued a warning to cryptocurrency exchange operators for providing services without proper authorization.

“All businesses and individuals offering, promoting or selling financial services or products in the UK must be authorized or registered by us,” the FCA said in a statement. “This company is not authorized by us and is aimed at people in the UK.”

Bitcoin prices last saw a 5.2% drop in the session at $1,8407.20 each, a move that extends its year-to-date decline to around 61.4%.

Neither price was also on the move, dropping 3.3% to a two-month low of $1,2910.18 each after last week’s “merger” between two blockchains that back the world’s second largest digital token.

The US dollar index rose 0.25% in early trading on Monday, close to its highest level in 20 years, to trade at 110,095 against a basket of six global peer currencies, indicating the dollar’s year-to-date gains. About 14.7%.

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Coinbase Global (Currency) Shares are marked down 5.66% in pre-market trading to indicate an opening bell price of $69.81 per share while Robinhood Markets (Hood) Shares fell 0.6 percent to $10.19 per share.


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