Crypto and stock markets tumbled as the U.S. dollar rallied to its highest point since March 2020 amid concerns of looming interest rate hikes at the U.S. Federal Reserve.
See related article: Is Bitcoin really a hedge against inflation?
- The U.S. stock market fell with Nasdaq dropping by 4% on Tuesday over concerns of China’s slowing growth and further lockdowns to battle rising Covid-19 cases in Beijing.
- Bitcoin continued to display a correlation with traditional markets, sinking 5.6% over the past 24 hours, according to CoinGecko.
- Dogecoin, the biggest winner in Twitter’s approval of Elon Musk’s US$44 billion takeover, retraced most of its gains to concede its top 10 crypto position after a 10% drop to 13th.
- Markets remain on edge with the Fed expected to raise interest rates by 50 basis points in May as inflation rates hit the fastest pace in 40 years.
See related article: Bitcoin’s 30-day performance shows it’s not just another tech stock