Bitcoin Plunges to $42,000 Following the Federal Reserve’s December Meeting

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Bitcoin, the largest cryptocurrency in the world by market value plummeted sharply on Thursday. The digital currency and other cryptos fell sharply as hawkish minutes from the Federal Reserve’s December meeting hit global risk assets.

In the last 24 hours, Bitcoin was trading around the $42,700 mark, a 7% decrease from the previous day, according to data from Coin Metrics. As of this moment, the digital token is trading around the $43,000 mark; the lowest price in over a month. Meanwhile, Ethereum, the second-largest crypto by market cap plunged nearly 12% to $3,335 while Solana sank 12% to $146.

The price plummets followed a large sell-off after stocks fell on Wednesday. The move followed the release of minutes from The Fed’s December meeting. During the meeting, the central bank will lessen its supportive monetary policy, including reducing the number of bonds it holds. It also said that it may raise interest rates sooner than expected. In conjunction with that, the benchmark 10-year Treasury yield topped 1.7% on Wednesday.