Bitcoin nears 18000 amid rate hike
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Bitcoin nears $18,000 amid rate hike expectations

On Monday, most cryptocurrencies fell to fresh lows as investors feared the upcoming next hike in lending rates by central banks. reported Agency Reuters. First of all, the rate hike will hit risky assets, which include virtual coins.

    Image source: Kanchanara/unsplash.com

Image source: Kanchanara/unsplash.com

Bitcoin, the largest cryptocurrency by market share, fell about 5% to a three-month low of $18,387. Ethereum, which ranks second by market value, fell 3% to a two-month low of $1,285. Most other smaller tokens have fallen in price even more than the market leaders.

The Ethereum blockchain, which underlies the token of the same name, recently received an update to merge and switched to the proof-of-stake algorithm, which can significantly reduce energy consumption. However, its value has fallen after US Securities and Exchange Commission Chairman Gary Gensler announced last week that the new structure may require additional regulation.

Matthew Dibb, COO of Singapore-based crypto platform Stack Funds, described the official’s words regarding the prospects for stricter regulation of Ethereum as just an assumption that may or may not come true. He also noted that currently there is no reason to expect the emergence of incentives for the rapid growth of the cryptocurrency market, what “will bring a lot of new money”.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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