Bitcoin's price hits a six-month low near $38,500

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The price of bitcoin (BTC), the world's largest cryptocurrency, continues to reel as it faces pressure from macroeconomic conditions, such as concerns around the tightening of US monetary policy.

In November, bitcoin touched an all-time high above $69,000. Yet it has declined significantly since then. Bitcoin is currently trading at around $38,500, the level it last saw in early August.

"Macro confusion continues as we are in the Fed blackout period until the 26 Jan meeting," said crypto trading firm QCP Capital in its note earlier this week. "We think this sideways market could persist for a while, but when it does break out, it will be a violent one."

The Federal Open Market Committee is set to hold a meeting on January 25 and 26 for the first time this year. The US monetary policy outlook is hawkish in light of 7% inflation, the highest in 40 years. The Fed is expected to hike rates several times this year due to the rising inflation.

The price of ether (ETH) is also trading down at around $2,800, the level it last saw in September.

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