The two largest cryptocurrencies — bitcoin (BTC-USD) and ether (ETH-USD) are both continuing to decline Tuesday morning, though they have come off their lows. Some altcoins, though, are making gains. Bitcoin (BTC-USD), down 6.9% to $22.0K at 7:33 AM ET, had dropped as low as $21.0K, according to CoinMarketCap, the lowest level since December 2020. Ether (ETH-USD), down 2.2% to $1.17K, had dropped as low as $1.10K on Tuesday, the lowest it's been since Jan 2021. The excess liquidity, helped by accommodative monetary policy and massive fiscal support by the U.S. government during the pandemic that helped to bolster cryptocurrencies, is now resetting as the Federal Reserve is poised to raise rates again tomorrow. Traders now are pricing in a 75-basis-point hike rather than the 50-bp hike that had been expected. As the world's largest cryptocurrency is still showing weakness, shares MicroStrategy (NASDAQ:MSTR), which holds 129,918 bitcoins (BTC-USD), is dropping 8.3% in premarket trading. The
