Bitcoin Rebounds From Lowest Level Since June

Volcano-Powered Bitcoin Mining
Volcano-Powered Bitcoin Mining

Bitcoin plunged below $19,000 on Wednesday morning following a global drop in stock markets and the U.S. dollar’s continued strength.

The total value of the cryptocurrency market also plummeted below $1 trillion as cryptos saw a sharp sell-off. Bitcoin was last trading slightly higher at around $18,955.34, according to Coin Metrics. 

Central banks around the world are grappling with inflation by tightening monetary policy. The U.S. Federal Reserve has launched a series of aggressive interest rate hikes totaling 2.25 percentage points. Analysts are expecting further interest rate rises.

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Bitcoin has traded in correlation to stocks and so if they fall, in general, so does the cryptocurrency.

“The macro environment also continues to prove difficult with the dollar continuing to put in highs. This impacts all risk assets as we can see,” Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, told CNBC.

“If we see the dollar start to move back down, then we should be able to get risk assets such as bitcoin move back up again.”