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. 

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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.