Bitcoin drops 5% to 3-month low as risky assets continue to crash

Ether has significantly outperformed bitcoin since both cryptocurrencies bottomed in June 2022. The outperformance gains for Ether came as investors anticipate a major upgrade to the Ethereum blockchain called a “consolidation.”

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Bitcoin slumped to a three-month low on Monday as investors dumped risky assets amid expectations of higher interest rates.

The world’s largest cryptocurrency fell 5% to an intraday low of $18,276, hitting its lowest level since June 19. Bitcoin is down 7.2% this month and is on track for its second consecutive negative month after dropping 15% in August.

Ether fell by a similar 5% to $1,281 a piece on Monday, hitting its lowest level since July 15. Ether is down 17% this month, on track to post its worst month since June.

Risky assets have come under tremendous pressure as the Fed is expected to stick to its aggressive tightening schedule. The central bank is widely expected this week to approve a 0.75 percentage point increase in the benchmark interest rate for the third time in a row that would raise benchmark interest rates to the 3%-3.25% range.

CNBC’s Gina Francola contributed to this report.

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