(CoinDesk) Bitcoin traded around $45,300 on Wed. as major cryptocurrencies fell after Fed Governor Lael Brainard said that the central bank would shrink the balance sheet rapidly.
Brainard said that tackling inflation was “paramount,” hinting that the central bank would start balance sheet reduction as early as May.
The Fed governor said that the central bank will tighten monetary policy methodically, which also includes several interest rate hikes.
Other cryptocurrencies also tumbled following the hawkish comments, with Avalanche’s AVAX and Polkadot’s DOT shedding more than 6%. Solana’s SOL, Ether’s ETH, and XRP plunged 5%.
Dogecoin DOGE remained the only gainer among major cryptocurrencies, boosted by the appointment of Elon Musk to Twitter’s board.
Investors grew concerned that a restrictive environment could hurt economic growth, with the S&P 500 closing 1.26% lower on Tuesday following the comment. Tech-heavy Nasdaq fell more than 2%.
Despite the fall in BTC, institutional demand for the largest cryptocurrency is rising, with exchange outflows reaching almost 96,000 Bitcoin per month.
BTCUSD is down -0.31%, ETHUSD is down -1.59%
