The price of bitcoin continues to adjust after a week of growth, when the leading cryptocurrency reached $ 24 thousand for the first time in 6 weeks. Having fallen by 8% in the last 3 days, Bitcoin returned to the range 19 000-22 000 dollars.
Three-day Bitcoin (BTC) price chart. Source: CoinMarketCap
Altcoins suffered even more significant losses. Over the past 3 days, Ethereum (ETH), Solana (SOL) and Avalanche (AVA) have lost 9%, 11% and 12% in price, respectively.
The ongoing sell-off is mainly caused by fears amid expectations of an interest rate hike by the US Federal Reserve. The Fed is expected to raise interest rates by 0.75 points for the second month in a row.
The Fed's increase in rates in previous times led to a significant decrease in prices for Bitcoin and other cryptocurrencies. And as Bitcoin continues to move in tandem with tech stocks, low stock returns could play a crucial role in any possible downtrend.
Nevertheless, many analysts continue to believe that the worst is over.
Cryptocurrency markets are under threat of another round of sales after the Fed rate hike. However, if cryptocurrencies hold above this level, it may mean that they have finally reached the bottom, as some analysts suggest.
