Cryptocurrencies Slump While US Regulatory Scrutiny Increases

Bitcoin sank to a more than one-week low, buffeted by investor skittishness ahead of a looming Federal Reserve interest-rate hike and amid harsher regulatory scrutiny of the cryptocurrency sector.

The largest token dropped as much as 6.5% on Tuesday and was trading at around $20,904 as of 2:53 a.m. in New York. The MVIS CryptoCompare Digital Assets 100 gauge shed more than 5%, while recent high flyers Polygon and Ether was down about 10%.