Bitcoin trades below $20,000
Bloomberg • November 08, 2022
Bitcoin, the largest crypto asset in the world, fell over 2.3% yesterday to trade around $19,723, while other crypto assets declined as well. The index of top 100 crypto assets fell more than 2% after a challenging past few months while other asset classes are posting losses as well.
Risk assets as a whole are having a rough time against the macro-driven backdrop of inflation that forces Fed Chair Jerome Powell, amongst other central bankers, to keep a tightening monetary stance. Investors are worried that current interest rates will continue to rise in the foreseeable future, decreasing the appetite for risk assets.
Bitcoin and other crypto’s track risk assets such as the NASDAQ index quite heavily ever since the March 2020 Covid-19 crash. However, analysts and empirical data suggest that such correlation does not have to be set in stone, and can be prone to change.