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Bitcoin down on Fed interest rate hike pick-up

By Adrian Holliday

06:33, 17 June 2021

PHoto of bitcoin and arrow

Bitcoin -  like the Dow and the S&P 500 - fell back following the US Federal Reserve’s announcement last night that two interest rate hikes were penned in for 2023.

For the Fed, a key worry is inflation which is predicted to rise sharply again. However, the Fed indicated in March that current interest rates would continue to be held down until at least 2024.

Currently bitcoin is down 3.75% over 24 hours at $38,811. Ethereum is 4.20% lower at $2,421 over a 24-hour trading range which follows Tuesday’s fall of around 1.5%.

Solana top ten valuation survivor

The only top ten crypto asset that has moved into positive 24-hour valuation territory is Solana, up 2.88%. Most valuation falls range between 1.85% (binance coin) and 2.50% (cardano). Beyond the top ten there are chunkier valuation declines from stellar (down 3.85%) and internet computer (4%).  

The market pessimism has not stopped US venture capital investor Tim Draper saying earlier this week he still believed bitcoin could hit $250,000 next year in an interview with CNBC.

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World Bank refuses bitcoin help for El Salvador

In another development, the World Bank is refusing to help support El Salvador’s policy change to adopt bitcoin as legal currency. “We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes,” a World Bank spokesperson told Reuters.

“While the government did approach us for assistance on bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings.”

There are also issues with the IMF for the central American country. El Salvador's Finance Minister Alejandro Zelaya has reportedly said the IMF is “not against” bitcoin adoption. This is a view contradicted a week ago by the IMF saying it had distinct economic and legal concerns.

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