To The Moon

Bitcoin (BTC-USD) and Ethereum (ETH-USD) are tumbling in what has been an ugly start to the year for cryptocurrencies.

Bitcoin, the largest digital cryptocurrency, has extended its slide to fall to as far as $39,558 Monday morning, dipping below the crucial $40,000 level for the first time since September 2021.

Meanwhile, ethereum — the second-largest digital coin — slumped 2.76% to $3,020.16 after briefly dropping below the key $3,000 level.

The sell-off in crypto comes amid concerns over potential rate hikes by the Federal Reserve as soon as this quarter that has rocked the broader markets since last week as investors began dumping risky assets.

"The minutes from the Fed have increased expectations that the central bank of the world’s largest economy will now move faster to raise interest rates to fight soaring inflation,” saidNigel Green, chief executive and founder of deVere Group.“As a result, there’s been a knee-jerk sell-off on Wall Street and the crypto market as it is perceived by some traders that such a move puts at risk the liquidity that has benefitted many asset classes, including bitcoin.”

Bitcoin has now lost about one-third of its value since its all-time high of $67,000 in November 2021 —marking its worst start to the year for the token since 2012.