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Bitcoin drops 8% to below $44,000 as risky assets tumble globally, regulatory concerns intensify


Bitcoin prices fell sharply amid the global sell-off in equities.

Luke MacGregor  | Bloomberg | Getty Images

The price of bitcoin dropped sharply Monday as investors began shedding risk amid an equity markets decline.

While bitcoin is often called a safe haven asset, the growing reality is its price tends to go down amid broader declines in risk assets. Similar to stocks, the September decline in bitcoin prices has also been an ongoing trend.

Bitcoin According to Coin Metrics, bitcoin’s price lost 8.8% on Monday. It was last trading at $43,818.20. The broader crypto market is in the red as well, with ether down 9%.

Investors also pay attention to the Federal Reserve, and whether or not it signals its willingness to end monetary stimulation. The two-day central bank meeting begins Tuesday.

As uncertainty over the regulation of stablecoins increases, crypto is in decline. According to the New York Times, they could be designated systemically dangerous by the Financial Stability Oversight Council. This could lead to strict regulation for their owners and operators.

The President’s Working Group on Financial Markets is working up a report on stablecoins and the Fed is expected to put out a report on central bank digital currencies this month that could touch on stablecoin risks.