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Key Reasons for Bitcoin’s Recent Drop below $42,000

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).

Also, 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. Of course, which reveals that the central bank could raise interest rates as soon as March.

Then, 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%.
Also, The Dow Jones Industrial Average and the S&P 500 both ended the day in negative territory.

Due to a wave of demonstrations emerging in Kazakhstan, the second-largest Bitcoin mining center. Also, Bitcoin is also facing another headwind in the cryptocurrency mining business.

According to U.S. news reports, To suppress protests, the administration of the country ordered a statewide internet shutdown today. Thereby, forcing local miners to turn off their equipment.

Lastly, The network’s hashrate has now plummeted to 165 EH/s, according to Coinwarz data, after peaking at 229 EH/s on January 1.

Related Posts – Ex-SEC Chair, Jay Clayton Believes Cryptocurrency Industry Is For Long Haul

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.