Bitcoin is falling toward its 2022 low from June, or $17,602, as rising Treasury yields weighed on equity prices and the U.S. dollar continues to strengthen.
The cryptocurrency BTCUSD, -0.67% was trading at around $18,741.46, down 6% over the past 24 hours, according to CoinDesk data. Ether ETHUSD, -2.91% slid even further, trading at around $1,505.26 with a 10.6% decline over the past 24 hours. Binance Coin lost 6.8% to $262.82, while XRP XRPUSD, -0.25% dropped 4.2% to $0.32.
“The struggles of the digital currency are real, considering the path the U.S. Federal Reserve is committed to taking in its fight against inflation as we veer towards the end of the year,” Chris Esparza, chief executive and founder of Vault Finance, wrote to MarketWatch in an email.
Investors are waiting for a key speech from Federal Reserve Vice Chair Lael Brainard at 12:35 Eastern time and the release of the latest Fed-compiled look at the U.S. economy.
From a technical perspective, bitcoin has fallen below an important support level of $19,530, noted Daniel Kostecki, senior financial analyst at Conotoxia.
“The risk environment was always looking like a major headwind for bitcoin and the technical setup wasn’t looking any more promising,” Craig Erlam, senior market analyst at OANDA, wrote in a Tuesday note. “The question now is whether we could see another spiral, as we so often have in the past,” according to Erlam.