Bitcoin gets a kick out of fear of rising interest rates

Bitcoin was trading around 43 thousand dollars on Friday morning, which has resulted in devaluation after yesterday it was trading at 45 thousand dollars. The cryptocurrency has behaved much like the stock market, reacting to inflation figures and concerns about higher interest rates. Bitcoin has grown by more than 13 percent so far in February.

The currency reacted after the news that inflation in the US rose by 7.5 percent in January, raising expectations that the Federal Reserve will have to move hard to "cool" the economy by raising interest rates, reports foxnews. President of the Federal Reserve of St. Louis, James Bullard suggested that interest rates will rise by another 1 percent by July. Meanwhile, Ether, the second-largest cryptocurrency by market capitalization, was trying to recover on Friday morning after falling 4 percent during Thursday's session.

Bitcoin trading volume has been in higher trend and has generally been higher than a week ago, based on data compiled by CoinDesk.