Why Bitcoin, Ethereum, and Shiba Inu Are Falling Today
Shares of most cryptocurrencies fell over the weekend as digital assets and stocks prepare for what could be a turbulent week, with the Federal Reserve set to hold its July meeting, another big interest rate hike in store, and more important economic data due out later this week.
Over the last 24 hours, the price of the world's largest cryptocurrency, Bitcoin (CRYPTO: BTC), had fallen about 2.6% as of 9:13 a.m. ET Monday. The price of Ethereum (CRYPTO: ETH) was down more than 3%, and the meme token Shiba Inu (CRYPTO: SHIB) had fallen 3.5%.
Like many tech stocks and riskier assets this year, crypto prices have taken a beating as inflation has soared this year and the Federal Reserve has rapidly increased its benchmark overnight lending rate, the federal funds rate. Riskier assets typically do not fare well in the face of rising interest rates because the yields on safer assets rise, demanding more from the earnings and returns of growth assets, which previously traded at premium valuations.
Source Fool.com
