BTC and ETH Tank Due to Rate Hike, Celsius, and Fears

BTC and ETH Tank Due to Rate Hike, Celsius, and Fears

The Block reported that multiple factors likely contributed to the recent plunge in Bitcoin (BTC) and Ether (ETH). The publication suggested that the Bank of Japan's unexpected decision to hike interest rates, the ongoing Celsius drama, and growing fears of a global recession all played a role in the selloff. The Japanese central bank's decision to raise interest rates for the first time in seven years caught markets off guard. The move was seen as a sign that the global economy is not recovering as quickly as expected. Fears of a slowdown in global economic growth have led to a sell-off in risky assets, including cryptocurrencies. The Bank of Japan's rate hike also made it more expensive for investors to borrow money to buy cryptocurrencies, which further contributed to the selloff. The ongoing Celsius drama has also contributed to the decline in cryptocurrency prices. Celsius is a cryptocurrency lending platform that has been struggling to meet withdrawals from its customers. The company has been accused of misleading investors about its financial health and is now facing investigations by several regulatory agencies. The Celsius drama has raised concerns about the stability of the cryptocurrency market and has led to a sell-off in cryptocurrencies. Growing fears of a global recession are also weighing on cryptocurrency prices. A recession is a period of economic decline that is typically characterized by a decrease in output, employment, and investment. A global recession would likely lead to a decrease in demand for cryptocurrencies, which would further contribute to the selloff.