Bitcoin, which soared the previous day, turned sharply and fell back to $23,000 again.
As of 9:30 a.m. on the 17th, Bitcoin has plunged 3.65% from 24 hours ago to $23,735 on CoinMarketCap, a global coin market broadcasting site.
On the previous day, Bitcoin soared about 10% on the news that a large number of short (selling) positions were liquidated, surpassing USD 25,000 at one time. It was the first time since August last year that it surpassed 25,000 dollars.
However, Bitcoin fell back again, collapsing in the $24,000 range, as well as falling to the mid-$23,000 range.
This is interpreted as the U.S. stock market fell en masse due to concerns that the Fed will return to an aggressive rate hike. Dow fell 1.26%, S&P 500 fell 1.38%, and Nasdaq fell 1.78%, respectively.
This is because last month’s Producer Price Index (PPI) released on the same day far exceeded market expectations.
The U.S. Department of Labor announced last month that PPI rose 0.7% from the previous month and 6.0% from the previous year, respectively. This far exceeded Bloomberg’s expectations of 0.4% from the previous month and 5.4% from the previous year.
As a result, there is a growing possibility that the Fed will return to aggressive rate hikes again, with Fed officials insisting that a 0.5 percentage point rate hike should be carried out at the next Open Market Committee (FOMC) meeting one after another.
Cryptocurrency, an asset that is more dangerous than stocks, is more vulnerable to interest rate hikes. As a result, Bitcoin, which soared the previous day, seems to have turned sharply.