The $45,000 Bitcoin collapsed due to Fed Gov Lael Brainard’s tough remarks, another result of the Brainard Shock.
Bitcoin is trading at $44,999 on Coin Market Cap, a global coin market relay site, as of 8:40 a.m. on the 6th (GMT+8), down 3.22% from 24 hours ago.
The reason why Bitcoin is plunging is attributed to hawkish remarks by Brainard on interest rate hikes.
To lower inflation, the Fed will start shrinking its balance sheet at a rapid pace shortly after the May meeting and tighten its currency systematically through a certain rate hike, she said in a debate hosted by the Federal Reserve Bank of Minneapolis on the 5th (local time).
She added that The Fed is ready to take stronger measures if we think the measures we think are justified in consideration of inflation indicators and inflation expectations.” In other words, the government is willing to raise interest rates by 0.5 percentage point.
As a result, the U.S. stock market and Asian stock markets fell all at once, especially the Nasdaq plunged 2.26 percent.
DogeCoin also reduced its gains. At the same time, Doji Coin jumped 11.40% to $0.1658. About three hours ago, DogeCoin jumped 14 percent.
This is attributed to expectations that DogeCoin could be integrated with Twitter as Tesla CEO Elon Musk is appointed as a Twitter director.
At the same time, Bitcoin is also trading at 55.73 million won on Upbit, a Korean trading site, down 0.81% from 24 hours ago.
