Most popular cryptocurrency Bitcoin on January 7, 2022, plunged below $42,000, which is its lowest since September, 2021. Bitcoin touched $40,938, its lowest recorded since September 29.
According to https://coinmarketcap.com/, the crypto currency leader which has 39.92 percent market dominance and a market capital of $797,578,294,757, has lost over $27,000 or 40 percent since hitting a record high of almost $69,000 in November 2021.
Following the shutdown of Kazakhstan's internet due to the uprising, the global computing power of the bitcoin network has dropped sharply this week.
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According to the Cambridge Centre for Alternative Finance, Kazakhstan became last year the world`s second-largest centre for bitcoin mining after the United States. This happened after Chinese authorities clamped down on crypto mining activity in late 2021.
Earlier on January 5, the authorities during the US Federal Reserve meeting appeared to lean toward more aggressive policy action, sapping investor appetite for riskier assets.
"We are seeing broad risk-off sentiment across all markets currently as inflationary concerns and rate hikes appear to be at the forefront of speculators' minds," said Matthew Dibb, COO of Singapore crypto platform Stack Funds.
"Liquidity in BTC has been quite thin on both sides and there is risk of a retreat back to the mid-30's on the short term."
Currently, bitcoin was trading at $42,128.13, which was 2.24 percent or $965.42 below compared to the opening trading value.
With inputs from agencies.