Multiple cryptocurrencies — including Bitcoin — dropped sharply Thursday as global stocks continued to fall, CNBC reports.
Bitcoin — which was worth $43,058.75 on Thursday morning — dropped as low as $42,496 in the last 24 hours, according to CNBC.
Similarly, Ethereum dropped 12% to $3,411.92.
The cryptocurrency Solana fell 12% to $148.58.
The decline in cryptocurrency coins comes as the Federal Reserve showed officials are seeing a potential quick rise in interest rates for 2022, according to The Wall Street Journal.
“As rates rise, holding volatile investments that produce little income becomes less attractive compared with government bonds,” WSJ reports.
Experts said the fast falloff is a sign that cryptocurrencies are risky investments for most people, per MarketWatch.
“This is proof that bitcoin acts like a risk asset,” Noelle Acheson, head of market insights at crypto lender Genesis Global Trading, told The Wall Street Journal. “The short-term holders, they are the ones who are trading and will be closest to the exit.”