Fintech

Bitcoin slumps alongside ether on Fed’s plans to raise interest rates

As rates rise, holding volatile investments that produce little income becomes less attractive compared with government bonds

Thursday 6 January 2022 at 12:51

Cryptocurrencies led by bitcoin and ether slumped as part of the broader tech selloff, cementing their status among investors as risky assets quickly dumped in moments of market stress.

The falls were triggered by Federal Reserve minutes that showed officials are eyeing a faster timetable for raising interest rates this year. As rates rise, holding volatile investments that produce little income becomes less attractive compared with government bonds.