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The price of bitcoin fell to a three-month low on Monday morning, continuing a slide that began when the Federal Reserve launched a broad selloff last week, warning that it could move more bullishly than previously thought. which means reversing the policy to strengthen the economy. The latest cryptocurrency could last for weeks if the pandemic, and experts predict, if the central bank’s aggressive stance turns more aggressive.

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Bitcoin fell 5% to $39,692 as of 9:45 a.m. ET, according to crypto data website CoinGecko, adding more than 12% of its losses as the Fed warned on Wednesday that it would try to address the pandemic-era stimulus. may proceed more aggressively. Wants to combat high levels of inflation.

In a weekend email, analyst Yuya Hasegawa at cryptocurrency broker BitBank cautioned that he expects the world’s largest cryptocurrency to continue to fall as far as the broader market, which has similarly struggled since the Fed’s announcement on Wednesday, as soon as The Fed absorbs the possibility of a hike in interest rates. ,

Although Hasegawa said bitcoin could drop to $40,000 in the near-term, analysts warned that the government’s consumer price index report due on Wednesday could accelerate price weakness if it pushes inflation higher than expected. So that further justifies the Fed’s decision to reduce the stimulus. raise rates.

In a Monday note, Marcus Sotirio, an analyst at UK-based digital asset broker GlobalBlocks, said he expects bitcoin to remain around $40,000, even though a CPI report on Wednesday shows inflation is more bullish than in the previous month. Given the recent sell-off, the price has been paid in potentially highly negative expectations.

On Thursday, crypto billionaire Mike Novogratz, CEO of financial services firm Galaxy Digital, said CNBC’s selloff could push bitcoin further down 8% from current prices to $38,000 – an unseen level since early August.

“I don’t panic in the medium term, but we are going to have a lot of volatility in the next few weeks,” the hardcore bitcoin bull told CNBC, before pointing out that booming Institutional adoption as a bullish indicator for the nascent space.

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