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Bitcoin, the flagship cryptocurrency, dropped roughly 4% to an intraday low of $60,018 on the Bitstamp exchange after it was revealed that the U.S. Federal Reserve would start "tapering" in November.
In its most recent post-meeting statement, the Federal Open Market Committee announced that bond purchases will be reduced by $15 billion each month.
Interests rates, however, remain unchanged for now, according to a decision made by Fed officials.
The central bank still sees inflation as "transitory" contrary to the expectations of many financial analysts.
As reported by U.Today, billionaire PayPal co-founder Peter Thiel recently opined that high Bitcoin prices were a sign of "real" inflation.Last month, Twitter CEO Jack Dorsey sparked heated debates with his controversial tweet about "hyperinflation."
The largest cryptocurrency is yet to fully recover from the plunge. At press time, it is changing hands at roughly $61,800 on major spot exchanges.
Bitcoin has been struggling to regain bullish momentum after hitting its current lifetime peak of $67,276 on Oct. 20.
Arman Shirinyan
