Risk-Off: Sour Sentiment on Wall Street May Have Added to Bitcoin’s Plunge

Risk-Off: Sour Sentiment on Wall Street May Have Added to Bitcoin’s Plunge

Bitcoin’s steepest price correction since March 2020 coincided with a growing sense of risk aversion on Wall Street, where investors are becoming concerned that rising inflation might prompt the Federal Reserve to tighten monetary policy – a move that could undermine the bullish case for riskier assets.

Stocks, oil and industrial metals were nursing losses. Prices for gold, seen as a traditional safe-haven asset or inflation hedge, rose. The yield on 10-year U.S. Treasury bonds slipped two basis points, or 0.02 percentage point, to 1.62%. Falling yields on the U.S. government bonds are often taken as a sign of risk aversion.