Bitcoin erases drop sparked by Fed's warning of rate-hike pain
BNN Bloomberg
Cryptocurrencies fought off declines triggered by another large Federal Reserve interest-rate hike, though sentiment remained cautious given the central bank’s warning of economic pain ahead from tightening policy.
Bitcoin, the largest token, was about 1.2 per cent higher as of 10:50 a.m. in London on Thursday after earlier sliding as much as 4 per cent toward levels last seen in 2020. Second-biggest coin Ether continued to underperform, shedding 2 per cent.
Markets are shuddering at the Fed’s determination to fight inflation by constricting financial conditions. Shorter maturity Treasury yields jumped more than longer tenor rates, deepening a bond curve inversion seen as a signal of recession. A dollar gauge was at a record as investors sought a bolthole.
