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• Bitcoin and Ether's stocks dropped to their lowest points
• Crypto-related stocks continue to drop in price as sell-off continues
Bitcoin fell nearly 7% at one point Monday to its lowest in over five months, tumbling under the $40,000 level, as rising rates lead investors to shed risky positions in growing assets.
The world's largest cryptocurrency, Bitcoin's, price fell to a low of $ 39816.94: its lowest point since September but has since reclaimed some of its losses.
The second-largest cryptocurrency by market cap, Ether's, stock fell more than 7% to below the $3,000 mark. The stock price fell to a low of $2,950.
Along with the prices of cryptocurrencies, stocks related to digital assets also fell Monday.
Crypto exchange platform Coinbase fell 7.6%, while Microstrategy dropped nearly 7.2% and Block — formerly Square — almost 7%.
Crypto banks Silvergate and Signature were down by 10% and 5.4%, respectively.
Rising rates
Declines across the crypto market follow a week of rough trading for equities, particularly momentum stocks.
On Thursday, the coin fell below $41,000, as minutes from the Federal Reserve's December meeting suggested that the U.S. central bank will reduce its pandemic-era stimulus and sparked a sell-off in global financial markets, which spread to cryptocurrencies.
Bitcoin's November high of $69,000, after the U.S. government reported that its inflation 30 years high with its consumer prices jumped 6.2%, which forced investors to jump into inflation hedges, including digital assets and gold.
However, since its record high in November, Bitcoin prices have fallen nearly 40%.
Last week, Goldman Sachs said it sees Bitcoin snag away market share from gold in 2022 and potentially climb to $100,000 as the digital currency has become more widely adopted.
Picture Credit: CNBC