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Bitcoin dips to a three-month low as cryptocurrencies continue to fall in price.

According to data from Coin Metrics, the price of the world’s largest cryptocurrency bitcoin fell below the $41,000 mark to $40,749.90 just after 10:50 a.m. ET on Friday, reaching its lowest since Sept. 29, 2021. The drop comes amid fears over U.S. monetary policy tightening and an internet shutdown in Kazakhstan, the world’s second-biggest bitcoin mining hub.

Much recent news has negatively affected the world’s largest cryptocurrency price. Bitcoin dipped in price minutes after the Federal Reserve’s December meeting hinted the U.S. central bank would dial back its pandemic-era stimulus earlier this week. The hawkish comments triggered a sell-off in global stock markets, which spilled over into cryptocurrencies. Bitcoin bulls often describe it as an uncorrelated asset to traditional financial markets. However, experts have noticed growing parallels in the price movements of bitcoin and stocks. Other digital currencies continued to slide Friday, with ethereum shedding 6.8% and Solana falling 7.7%. The move by the president of Kazakhstan to shutter internet service following deadly protests against the government harmed the prices of Bitcoin. According to the Cambridge Center for Alternative Finance, the Central Asian country accounts for 18% of the bitcoin network’s processing power. Many crypto miners fled China for neighboring Kazakhstan over Beijing’s ban on virtual currency mining. According to some estimates, Kazakhstan’s internet shutdown took as much as 15% of the network offline. Bitcoin’s computing power “is not directly correlated to the price of Bitcoin, but it gives an indication of the network’s security, so a fall can spook investors in the short term,” Marcus Sotiriou, an analyst at U.K.-based digital asset broker GlobalBlock, said in a note Thursday.



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