Market

These 3 factors come together to put Bitcoin in dire straits

Bitcoin price fell to a daily low of $ 42,798, a daily decline of 7.5% since Bitcoin magazine reported. The crypto king is struggling to recover and is currently trading at $ 42,927.

Altcoins struggled even more, with all of the altcoins in the top 10 posting double-digit losses.

Source: Coinmarketcap

The Fed is making investors uncomfortable

The market turmoil came minutes after the Fed’s December meeting results were released yesterday, suggesting the central bank could hike rates as early as March. This news caused US stocks to collapse and the crypto market was also badly affected.

Protests break out in Kazakhstan, causing Bitcoin’s hash rate to drop

BTC also faced further headwinds in the crypto mining sector when a wave of protests broke out in Kazakhstan, the second largest Bitcoin mining hub. The government has reportedly ordered a nationwide internet shutdown to quell the unrest and forced local miners to turn off their equipment.

According to Coinwarz, the network’s hash rate has now dropped to 166 EH / s after peaking at 229 EH / s in January.

Source: Coinwarz

Bitcoin breaks critical support

Mark Newton, Managing Director of Fundstrat Global Advisors, noted that $ 45,655 is a critical level of support for Bitcoin.

Now that it’s broken, the leading cryptocurrency appears to be well on its way to falling below $ 40,000 for the first time since September 2021.

“I highlighted the very important $ 45,655, but it was broken on Tuesday. In my opinion, this leaves the price vulnerable to a decline to test the September 2021 lows near $ 39,573. This seems to be the first real support. “

https://twitter.com/carlquintanilla/status/1478900546828443650?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.