Bitcoin value slumped by three percent Monday to Ksh.4.4 million, having moved below the key Ksh.4.6 million level late on Friday
This is linked to the U.S. Federal Reserve’s intended move to aggressively tighten monetary policy which will continue to rock the digital asset space.
According to Financial Times, if inflation does not abate sufficiently, there is scope to tighten monetary policy at a faster pace than they currently anticipate.
That could mean either raising rates more quickly or shrinking the size of the Fed’s balance sheet, which swelled to almost $9 trillion during the pandemic as it hoovered up bonds to prop up the economy.
The latest inflation report showed US consumer prices surging at an annual pace of 7.5 percent, the fastest increase in four decades.
Bitcoin first rose to Ksh.5,428,966.00 on March 31, reaching its highest level since December last year compared to when it last slumped to its lowest in January to Ksh.Ksh.4,343,177.