According to CoinDesk, Bitcoin, the oldest and biggest digital asset, fell by almost 4% to $20,205. Avalanche AVAXUSD –1.42% and Solana SOLUSD –2.49% both declined by 7 percent, while Ethereum ETHUSD –2.66% was down by 6 percent.
Markets in Asia and the United States both fell on Wednesday as investors worried that central banks would have to boost interest rates aggressively to control inflation. In the previous several weeks, the volatility and declines in crypto assets have been more than for traditional assets, which have moved in a similar range.
Earlier this week, Goldman Sachs boosted its projection for a U.S. recession to 30 percent. This month, the Federal Reserve is projected to hike rates 75 basis points, according to Richmond Fed President Tom Barkin.
After falling under $20,000 over the weekend, Bitcoin has subsequently risen back to the psychologically significant milestone of $20,000. Assuming the market doesn’t hold, Bitcoin might go back to its weekend lows of around $18,000, and then to the next support level of approximately $12,500-13,500 if it breaks.