Bitcoin briefly fell to its lowest level in three months as risky assets continued to be crushed.

Since both cryptocurrencies bottomed out in June 2022, Ether has significantly outperformed Bitcoin. Excellent returns on Ethereum have come as investors expect a major upgrade to Ethereum-his blockchain called “Merge.”

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Bitcoin It fell to a three-month low on Monday as investors sold riskier assets amid expectations of higher interest rates.

The world’s largest cryptocurrency fell nearly 5% to an intraday low of $18,276, its lowest level since June 19. It ended down 2.9% to $19,166.00. Bitcoin is down 7.2% this month and is on a negative pace for the second month in a row after he plummeted 15% in August.

ether Monday also fell 5% to $1,281, reaching its lowest level since July 15th.. It is currently down 17% this month and is set to record its worst month since June.

Risk assets are under heavy pressure as the US Federal Reserve (Fed) is expected to stick to its aggressive tightening schedule.The central bank is widely expected to approve this week Interest rate hike of 0.75 points for the third consecutive time This results in benchmark rates ranging up to 3% to 3.25%.

Chris Klein, Bitcoin’s chief revenue officer and co-founder, said, “While retail investors have a long-term outlook on Bitcoin, institutional investors are more likely to take a long-term view of digital assets such as technology stocks. The Fed’s tightening policy has strengthened the dollar and put pressure on risk assets across the board.

According to senior analyst Julio Moreno, so-called “whales” — institutional investors, miners and other high-volume bitcoin holders, who typically hold more than 1,000 bitcoins in their wallets — have been on the macro side since June. We are hedging the situation and selling our coins. At blockchain analytics company CryptoQuant.

That is evidenced by the increasing amount of coins being sent to exchanges and dumped by retail investors who believe Bitcoin is bottoming out at these levels, but in reality He said we need to go further.

CryptoQuant data shows that Bitcoin bottomed out between $10,000 and $14,500 this cycle.

CNBC’s Gina Francolla contributed to this report. Bitcoin briefly fell to its lowest level in three months as risky assets continued to be crushed.

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