Cryptos are at risk of a rate hike as Bitcoin falls below $19,000

Web Desk — With interest rate rises looming around the world, cryptocurrencies fell to fresh lows on Monday due to regulatory concerns.

The price of bitcoin, the largest cryptocurrency by market capitalization, fell about five percent to $18,387, the lowest level in three months.

The second-largest cryptocurrency, Ether, fell 3pc to a two-month low of $1,285 and is down more than 10pc in the past 24 hours. The smaller tokens were even worse off.

Over the weekend, the Ethereum blockchain, which underpins the ether token, underwent a major upgrade called the Merge.

According to some speculation, the token’s value has fallen after remarks last week from US Securities and Exchange Commission Chairman Gary Gensler implied that the new structure could attract more regulation. As a result of the upgrade, trades were also unwound.

Matthew Dibb, COO of Singapore crypto platform Stack Funds, said the regulatory outlook is speculation.

“Since the merger, there has been a lot of hype in the markets,” He said. Given the nervous global backdrop, it’s really been a sell-the-news event, he added, predicting that ether could test $950 in the coming months.

“In terms of fundamentals and technicals, the landscape isn’t looking bright right now. We don’t see any immediate bullish catalyst that could boost these markets and add a lot of liquidity.”