Bitcoin fell to unprecedented trading levels in more than three months, down 40% from the record high of $ 69,000 recorded in November, amid broader sales in cryptocurrencies.
The world’s first digital currency fell by one point 3.7% to $ 40,938, the lowest level since the end of September. Ether, the second largest, fell by a massive 9% to its lowest level since September 30. Both of these tokens, along with others including Binance Coin, Solana, Cardano, and XRP, have lost more than 10% in the past week, according to data from CoinGecko.
The latest backlash is attributed to a sudden drop in the global computing power of the bitcoin network following the internet shutdown in Kazakhstan, which was put in place to mitigate the current uprising. The number of crypto mining operations in Kazakhstan has increased after China ordered crackdowns on the practice, dispossessing most of its crypto miners.
Crypto-currencies have also come under pressure following reports from a recent meeting of the U.S. Federal Reserve, released on Wednesday, that rate hikes could be made sooner and faster than expected. This news undermined investors’ desire for more risky assets.
” We are currently experiencing a widespread sense of risk loss across all markets as inflationary concerns and rate hikes appear to be at the forefront of speculators’ minds.Matthew Dibb, COO of Singapore crypto platform Stack Funds, told Reuters.
“BTC’s liquidity is relatively thin on both sides and poses a significant risk in the short term,” said the analyst.