Bitcoin drops 5% to its lowest level in 3 months as risk assets continue to get crushed

Ether has hugely outperformed bitcoin since both cryptocurrencies formed a bottom in June 2022. Ether’s superior gains have come as investors anticipate a major upgrade to the ethereum blockchain called “the merge.”

Expectations of higher interest rates caused investors to dump risk assets, which led to a fall in the price of the virtual currency.

The world's largest coin dropped to its lowest level in over a month. The digital currency is on pace for a negative month after plunging 15% in August.

The price of ether is at its lowest level in over a month. It is on track to be its worst month in six months.

The Federal Reserve is expected to stick to its aggressive tightening schedule. The central bank is widely expected to approve this week a third consecutive 0.75 percentage point interest rate increase that would take benchmark rates up to a range of 3%- 3.25

Gina Francolla was a contributor to this report.