The price of Bitcoin fell to its lowest level since August 19 as higher U.S. interest rate expectations and regulatory worries weighed on crypto. Strategy shares dropped after MSCI confirmed it will remove the stock from its global indexes.
Bitcoin was last down 3.3% at $71,480.6 by 17:30 ET on Thursday, its lowest level since August 19. Sentiment toward cryptocurrencies stayed weak on risks from higher U.S. interest rates and a less favorable regulatory outlook.
Crypto markets had fallen sharply through October and early November and struggled to make headway. Hot U.S. inflation data led markets to raise expectations for more Fed rate hikes, which could come as soon as December.
Strategy falls after MSCI index exit
Class A shares of Strategy ended more than 6% lower on Thursday after MSCI confirmed it will remove the stock from its global indexes. The index operator determined that such companies more closely operate akin to investment funds.
Japan's Metaplanet, the world's second-largest Bitcoin treasury by coins held, was also slated for removal from MSCI indexes. Strategy had warned earlier that an exclusion would result in $2.8 billion of its stock being liquidated.
However, the company has fueled its Bitcoin purchases chiefly through debt and capital issuances, leaving it vulnerable to any pullback. It had also sold some of its Bitcoin holdings earlier this year to meet mounting debt obligations.
Altcoins follow Bitcoin lower
Broader crypto prices also fell on Thursday. Ether shed 2.1% to $2,013.78, while XRP slipped 1.7%.
Solana and BNB dropped 2.4% and 4%, respectively, while Cardano lost 0.6%.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
