Bitcoin, tech stocks and FTSE slump as rate rise fears spark global sell-off

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As fears of a US interest rate hike were realized, it triggered a broader selling of riskier assets, falling below a five-month low, $40,000.

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The world’s largest cryptocurrency fell 5% in a one-day drop to $39,550, continuing a slide from its all-time high of $69,000 in November.

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The FTSE 100 also tumbled 0.5%, down 40.03 points at 7,445.25.

Michael Hewson, an analyst at CMC Markets, said: “The prospect of a sharp rise in US rates continues to keep markets on edge, accelerating losses as US markets reopen after the weekend.”

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He said the FTSE 100 outperformed others on gains in HSBC and Barclays, which were helped by higher bond yields.

Housebuilders were dragged onto the blue-chip after the government announced a bill to fix the cladding woes, forcing developers to make a U-turn.

The scheme would protect lessees from being trapped in unsold homes, but could cost the industry up to £4 billion by some estimates.

The biggest risers on the FTSE 100 were Vodafone, up 2.86p to 117.46p, BAE Systems, up 13.4p to 572p, CocaCola HBC, up 57p to 2,671p, HSBC, up 9.7p to 492p, and British American Tobacco, up 49p. to 336.6p.

The top losers on the FTSE 100 were Spirax-Sarco, down from 995p to 14,215p, United Utilities, down from 358p to 5,700p, Experian, down from 185p to 3,229p, Persimmon, down from 144p to 2,650p, and Halma, down from 151p to 2,823p .

Danny Hewson at AJ Bell said: “Why exactly the price has been taken so far for investors—the prospect of US rate hikes may seem somewhat puzzled. Rising inflation has flagged the need for months and the Fed is every minute word.” But today that day has come and some Wall Street banks have predicted no fewer than four hikes this year and the Nasdaq strengthened by hitting a 10-year Treasury yield at a two-year high. has entered the reform zone.

Among the fallers are the tech sector with Amazon, Tesla, ETC and Peloton as one of the hit takers.

Hewson continued: “Taper tantrums, Manic Mondays, whatever label you want to put on today’s carnage, the real story will be played out for the rest of the week. What investors just have is a quick panic followed by a deep breath and bargaining.” Will hunting be the place to go or what are investors really ready to bring in over the next twelve months?”

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