Bitcoin is down again

Bitcoin is down again

Photo Credits: DepositPhotos

Bitcoin fell to a three-month low amid nervousness over tightening U.S. monetary policy and shutting down the Internet in Kazakhstan, the world’s second-largest bitcoin mining hub.

Cryptocurrencies increase losses

The price of bitcoin fell below the limit of $ 41,000 to $ 40,749.90, reaching the lowest level since September 29, according to Coin Metrics. It last fell 2.9 percent to $ 41,947.75.

The world’s largest cryptocurrency began to fall earlier this week after the minutes from the December meeting of the Federal Reserve indicated that the American central bank would withdraw its stimulus from the pandemic era.

“Hawk’s Comments” triggered a sell-off on global stock exchanges that spilled over into cryptocurrencies. Crypto bulls often describe bitcoin as an asset that is not related to traditional financial markets, but experts have noticed growing parallels in the movement of bitcoin prices and stocks.

Other digital currencies continued to fall, with Ethereum weakening 6.8 percent and Solana 7.7 percent.

Another piece of news that affects the prices of cryptocurrencies is the move of the President of Kazakhstan to turn off the Internet service after the deadly protests against the government.

The Central Asian country accounts for 18 percent of the processing power of the bitcoin network, according to the Cambridge Center for Alternative Finance. “Many cryptocurrency miners have fled China to neighboring Kazakhstan over Beijing’s ban on virtual currency mining.”

Shutting down the Internet in Kazakhstan took as much as 15 percent, according to some estimates.

“The calculated strength of bitcoin is not directly correlated with the price of bitcoin, but it gives an indication of network security, so a decline may scare investors in the short term,” said Marcus Sotiriou. He is an analyst at GlobalBlock.

How all this will work now becomes a big question. Will the crisis affect everyone? Will there be a jump in currencies at all?

Everything is slowly falling, state relations are not the best. Kazakhstan has serious problems and it seems that everything is getting worse.

It will probably always be profitable to invest in a crypto, but what about the crisis? Currencies are losing value in general and therefore crypto will not be in a good position.

Is there a base currency planned? Will certain ‘mergers’ be made?

There are too many questions, but no answers. The situation in the last two years has changed everyone’s lives. The economy is in decline and we all know how big a crisis can happen.

The worst-case scenario could be a big jump, false security and just the sudden collapse of everything. Blockchain itself is very diverse and may be an opportunity to provide ourselves with a part of it. We can also be creators on the blockchain. You just have to be careful and follow the developments around the global crisis.

Of course, the collapse is happening in many fields. Everything is related to money and you need to follow the events every day.

In 2022 we need wisdom and a good plan. Educate yourself and create the best solution for yourself.