Bitcoin, the world’s largest cryptocurrency, is under severe pressure because the federal reserve is making stock market investors nervous and also because of the protest in Kazakhstan, the second-largest Bitcoin mining center.
The Price of BTC Falls to $42,927
On the Bitstamp platform, the price of Bitcoin, the world’s largest cryptocurrency, fell to a daily low of $42,412 on Monday, a 7.5 percent decrease.
The crypto king is battling to rebound, trading at $42,927 at the time of writing.
Alternative cryptocurrencies have been hit even harder, with double-digit losses recorded by Solana (SOL), Terra (LUNA), and Polkadot (DOT).
The Federal Reserve is Making Stock Market Investors Nervous
The market turmoil follows the release on Wednesday of minutes from the US Federal Reserve’s December meeting, which revealed that the central bank could raise interest rates as soon as March.
The news sent U.S. stocks plummeting. The Nasdaq Composite index, which is known for its close relationship with Bitcoin, fell 3.34 percent to settle at 15,100.
Nvidia, AMD, and Adobe all saw their stock prices drop by more than 5%. The Dow Jones Industrial Average and the S&P 500 both ended the day in negative territory.
Kazakhstan is witnessing a wave of protests
Due to a wave of demonstrations emerging in Kazakhstan, the second-largest Bitcoin mining center, BTC is also facing another headwind in the cryptocurrency mining business.
To quiet discontent, the country’s government implemented a statewide internet shutdown, forcing local miners to turn off their equipment, according to U.Today.
The network’s hashrate has now plummeted to 165 EH/s, according to Coinwarz data, after peaking at 229 EH/s on January 1.
Bitcoin has broken through a critical support level
According to Mark Newton, managing director of Fundstrat Global Advisors, $45,655 was a key support level for Bitcoin.
The main cryptocurrency appears to be on track to go below $40,000 for the first time since September 2021 now that it has been breached.
FUNDSTRAT: “I had highlighted $45,655 as being important. This was violated on Tuesday, which in my view makes prices vulnerable to a decline down to test September 2021 lows near $39,573. This looks to be the first real support ..” #Bitcoin @MarkNewtonCMT pic.twitter.com/KDNz6z3vv2
— Carl Quintanilla (@carlquintanilla) January 6, 2022
