The price of bitcoin fell to its daily low of $ 42,412, representing a daily decline of 7.5%. The cryptocurrency king is struggling to recover and is currently trading at $ 42,927.
Alternative cryptocurrencies had an even harder blow, with Solana (SOL), Terra (LUNA), and Polkadot (DOT) posting two-digit losses.
The Fed worries investors in the stock market
The turmoil in the market comes when the US Federal Reserve could raise interest rates as early as this March.
This news led to a sharp decline in US stocks. The technology – oriented Nasdaq Composite Index, known for its high correlation with bitcoin, fell 3.34% to close at 15,100. Shares of Nvidia, AMD and Adobe fell more than 5%. The Dow Jones Industrial Average and the S&P 500 were also closed in the red.
Protests erupt in Kazakhstan
Bitcoin is facing others in the cryptocurrency mining industry due to a wave of protests erupting in Kazakhstan, the second largest bitcoin mining hub. The government of the country stopped a nationwide internet shutdown to alleviate the unrest, forcing local miners to switch off their equipment.
According to data provided by Coinwarz, the network hashrate has now dropped to 165 EH / s after a peak of 229 EH / s on January 1st.
Bitcoin Breaks Under Pivotic Support Level
Mark Newton, managing director of Fundstrat Global Advisors, notes that $ 45,655 was an important support level for bitcoin.
Now that it’s broken, the main cryptocurrency looks set to fall below the $ 40,000 level for the first time since September 2021.
FUND STRATEGY: “I identified $ 45,655 as important. This was surpassed Tuesday, leaving prices at risk of falling, in my opinion, to test the September 2021 low close to $ 39,573. This seems to be the first real support. ” #Bitcoin @MarkNewtonCMT pic.twitter.com/KDNz6z3vv2
—Carl Quintanilla (@carlquintanilla) January 6, 2022