The price of Bitcoin (BTC) fell below US$29,000 on Thursday, hitting a low of US$28,500. This is the lowest level for BTC since January 2022. The selloff in Bitcoin could be due to a combination of factors, including the release of the Federal Reserve’s minutes from its June meeting. The Fed is likely to continue raising interest rates in an effort to fight inflation, the filings indicated. It can weigh on risk assets like Bitcoin.
Although the transaction was in Bitcoin, Coinbase (COIN) is one of the few crypto stocks to buck the trend. COIN rose more than 5% on Thursday after the company received approval from the Commodity Futures Trading Commission (CFTC) to offer bitcoin futures trading to US retail investors. This is a significant development for Coinbase as it could help boost the company’s revenue and profits.
The broader cryptocurrency market also fell on Thursday. Ethereum (ETH) fell more than 7%, while Solana (SOL) and Cardano (ADA) fell more than 10%. Trading in cryptocurrencies has come as investors digest Fed minutes and weigh the risks of rising interest rates.
It remains to be seen how the cryptocurrency market will perform in the coming weeks and months. However, The recent selloff has created some attractive buying opportunities for investors bullish on the long-term prospects of Bitcoin and other cryptocurrencies.