Bitcoin Hits Two-Month Low Under $28,000

Crypto markets fell sharply Thursday in what has been a rough week for global markets, as investor concerns over interest rates resurfaced.

Bitcoin is trading under $28,000 for the first time since June 20, while Ether is down nearly 4% to $1,740.

On Wednesday, minutes from the Fed’s July meeting indicated that the US central bank remains concerned about domestic inflation – meaning that more interest rate hikes could be forthcoming. Major stock markets dropped after the release.

“With inflation still well above the Committee’s longer-run goal and the labor market remaining tight, most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy.”

Coupled with data showing that the US economy remains strong, investors are considering the possibility of rates staying elevated for a prolonged period, which is likely to be a headwind for risk assets like stocks and crypto.

The US 10-year bond yield stands at 4.3%, its highest level since 2008. Indeed, yields on government bonds around the world are hitting 15-year highs.

Big Movers

Only two digital assets in the top 100 by market capitalization have managed to post gains today.

Thorchain’s RUNE is up nearly 9% today and over 50% this week after the initial success of its ‘streaming swaps’ feature and interest in its upcoming lending platform. Meanwhile, Cosmos’s ATOM token is up nearly 2%.

Major DeFi tokens like SNX, ARB, UNI and CRV are down between 4% and 5%.