- Similarly, Ethereum dropped 12% to $3,411.92.
- The cryptocurrency Solana fell 12% to $148.58.
The decline in cryptocurrency coins comes as the Federal Reserve showed officials are seeing a potential quick rise in interest rates for 2022, according to The Wall Street Journal.
- “As rates rise, holding volatile investments that produce little income becomes less attractive compared with government bonds,” WSJ reports.
Experts said the fast falloff is a sign that cryptocurrencies are risky investments for most people, per MarketWatch.
- “This is proof that bitcoin acts like a risk asset,” Noelle Acheson, head of market insights at crypto lender Genesis Global Trading, told The Wall Street Journal. “The short-term holders, they are the ones who are trading and will be closest to the exit.”