Bitcoin Falls Below $19,000 As Cryptos Crack On Risk Of Rising Rates

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Representations of the virtual currency Bitcoin are placed on US dollar banknotes in this illustration taken May 26, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

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SINGAPORE, Sept 19 (Reuters) – Cryptocurrencies fell to new lows on Monday amid regulatory concerns and as investors around the world were coy about risky assets with interest rate hikes taking hold. are emerging all over the world.

Bitcoin, the largest cryptocurrency by market value, fell around 5% to a three-month low of $18,387.

Ether, the second-largest cryptocurrency, fell 3% to a two-month low of $1,285 and is down more than 10% in the past 24 hours. Most of the other smaller chips were deeper in the red.

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The Ethereum blockchain, which underpins the Ether token, received a major upgrade over the weekend called Merge, which changes the way transactions are processed and reduces power consumption. Read more

The token’s value fell amid some speculation that remarks last week by U.S. Securities and Exchange Commission Chairman Gary Gensler implied the new structure could attract additional regulation. The exchanges around the upgrade have also been resolved.

“It’s speculation about what might or might not happen,” Matthew Dibb, chief operating officer of Singapore crypto platform Stack Funds, said of the regulatory outlook.

“A lot of the hype has come out of the markets since the merger,” he said. “It’s really an information sell-type event,” he added, given the jittery global backdrop, and said ether could test $950 in the coming months.

“Looking at the landscape right now, both fundamentally and technically, it doesn’t look great. There is no immediate bullish catalyst that we can see who is going to support these markets and bring a lot of fresh money and cash.”

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Reporting by Tom Westbrook; Editing by Kirsten Donovan

Our standards: The Thomson Reuters Trust Principles.

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