As global markets retreat from risky assets, Bitcoin prices fell to an overnight low of $33 million. This was ahead of a week of central bank rate decisions and a move higher for U.S. dollars.
The Federal Reserve is expected to increase its key Fed Funds Rate by 75 base points on Wednesday. This marks its third significant hike in succession. Policymakers at the Bank of England and Swiss National Bank are expected to either continue with increases or echo the hawkish rhetoric. As markets become more risk-averse, crypto gains outpace those of fiat currencies.
There have been reports that FTX is under increased scrutiny. The Financial Times in London reported that the Financial Conduct Authority of the United Kingdom has warned the crypto exchange operator against providing services without authorization.
The FCA stated in a statement that almost all individuals and firms offering or promoting financial products or services in the UK must be registered or authorised by them. “This company is not authorized by us and is targeting UK citizens.
Bitcoin prices dropped 5.2% on the session to $18,407.20 per coin, an increase that brings its year-to date decline to just 61.4%.
Both prices fell 3.3% to $1,2910.18 per month after last week’s’merge’ of two blockchains which underpin the second-largest global digital token.
In early Monday trading, the U.S. dollar index rose 0.25% to 110.095, a close match of its recent 20 year high. This was against six global peer currencies. The greenback’s year-to date gain is around 14.7%.
Pre-market trading saw Coinbase Global (( COIN) share prices fall 5.66% to $69.81 each, while Robinhood Markets HOO ($10.19 each) shares fell 0.6% to $10.19.