Bitcoin plunges below $43k as Wall Street crashes

Bitcoin broke the $44k5 support it had held for weeks, leaving the rest of the crypto market in the red.

Crypto markets plunge on a negative day on Wall Street, sending Bitcoin price to a 3-month low.

A few hours ago, BTC was trading in a range above $46k. Starting at around 2:40 AM Vietnam time, the price of BTC dropped to $45k.

The price continued to fall for the next two hours, with the current price around $43k at press time.

Coinglass data shows that $500 million in liquidations took place in the last 4 hours alone.

The cryptocurrency's drop coincided with a 1,9% drop for the S&P and a 3% drop for the NASDAQ.

The market-wide decline was likely fueled by rumors that the Fed started raising interest rates earlier this year to combat inflation. US inflation was 6,8% in November – the highest level in nearly 11 years.

Bitcoin has responded well to previous inflation statistics, being recognized as an inflation hedge. In November, Bitcoin hit an all-time high after October's inflation numbers were released.

Bitcoin has been stuck in limbo since last month's liquidation, dropping to $50k.