Bitcoin is plunging on Thursday. The cryptocurrency trades down 5.1% at $2,354 a coin, its lowest since the beginning of June.
The sell-off comes as markets around the globe are under pressure a day after the Federal Reserve raised its key interest rate by 25 basis points and laid out its plan to begin uwinding its massive balance sheet.
But, the writing has been on the wall. Bitcoin had gained about 180% from the beginning of April through the middle of June, putting in a high of $2,999.97 on June 12.
That run prompted tech billionaire Mark Cuban to call bitcoin a “bubble.” Goldman Sachs also sounded the alarm on bitcoin in a note to clients sent out earlier this week, saying “the balance of signals are looking broadly heavy” and that the price could fall as low as $1,915.
While the news surrounding the cryptocurrency has been mostly positive as of late with China’s three largest bitcoin exchanges lifting their bans on client withdrawals and Japan’s government naming it a legal payment method, there is still one big issue that needs to be resolved. The US Securities and Exchange Commission took public comment on its prior decision to reject the Winklevoss twins’ exchange-traded fund. It is unclear when an updated ruling will be handed down.