BTC has fallen to nearly $18,000 on the eve of a credit rate hike

The cryptocurrency market began a new week with another drop. This time, the reason was investors' fears about a new increase in credit rates.

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The decision by several regulators to raise interest rates will deal a blow to risky assets, which include digital currencies. Bitcoin fell to $18,387 for the first time since early summer of this year. It has a market capitalization of less than $360 billion.

Ethereum, which recently switched to the Proof-of-Stake algorithm, also fell in price. The value of the world's second largest cryptocurrency by capitalization ($160 billion) was $1285 for the first time in two months, down about 3%.

ETH has another problem. After the transition, the cryptocurrency may need additional regulation. This statement was made by Gary Gensler, chairman of the United States Securities and Exchange Commission. During the week, Ethereum's price has already fallen by about a quarter.

Source: Reuters