The price of bitcoin has fallen sharply amid a global sell-off in stocks.
Luc McGregor | Bloomberg | Getty Images
The price of bitcoin fell sharply on Monday as investors began to hedge risks amid the stock market crisis.
While bitcoin is often viewed as a safe haven asset, the growing reality is that its price is falling amid a widespread decline in riskier assets. Much like stocks, the price of bitcoin typically goes down in September.
Bitcoin lost 9% on Monday and last traded at $ 43,818.20, according to Coin Metrics. The broader crypto market is also in the red, with Ether down 10% to $ 2,985.95.
Investors are also focusing on the Federal Reserve and whether it will signal its willingness to remove monetary stimulus from the economy. The two-day central bank meeting will begin on Tuesday.
The crypto decline comes as uncertainty over the regulation of stablecoins intensifies. The Financial Stability Oversight Council could designate them as systematically risky, the New York Times reported over the weekend, which could subject them and their operators to strict regulation.
The president’s financial markets task force is working on a report on stablecoins and the Fed is expected to release a report this month on central bank digital currencies that could touch on stablecoin risks.