Why Is Bitcoin Down Today?

Bitcoin prices are now down 50% year to date and are trading well off their all-time highs around $69,000 in November 2021. Total cryptocurrency market capitalization fell below $1 trillion this morning for the first time since February 2021. The Federal Reserve is poised to raise interest rates again this week, and analysts expect the central bank to keep raising rates through the end of the year and into 2023. The Fed is fighting a historic surge in inflation that rivals anything seen in the last four decades. Bitcoin ended 2021 up nearly 70% annual return for any asset class, let alone one without any tangible value or the full faith and credit of a national economy behind it. In 2022, investors are in a flight to safety across the board in most asset classes. Source