Advertisement
AD

Main navigation

Advertisement

Key Reasons Why Bitcoin Just Tanked to $42K

Advertisement
Thu, 6/01/2022 - 5:38
Key Reasons Why Bitcoin Just Tanked to $42K
Cover image via stock.adobe.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News
Advertisement

The price of Bitcoin, the world’s largest cryptocurrency, plunged to a daily low of $42,412 on the Bitstamp exchange, which marked a 7.5% daily drop.    

The crypto king is struggling to recover, currently trading at $42,927.

Alternative cryptocurrencies have taken an even harder beating, with Solana (SOL), Terra (LUNA) and Polkadot (DOT) recording double-digit losses.

The Fed unnerving stock market investors  

The market turbulence comes after minutes from the U.S. Federal Reserve’s December meeting, which were released on Wednesday, showed that the central bank could hike interest rates as soon as this March.

The news sent U.S. equities sharply lower. The tech-focused Nasdaq Composite index, which is known for its strong correlation with Bitcoin, pulled back 3.34% to close at 15,100. The shares of Nvidia, AMD and Adobe were down more than 5%. The Dow Jones Industrial Average and the S&P 500 also closed in the red.

Protests erupting in Kazakhstan

Bitcoin is also facing another headwind in the cryptocurrency mining sector due to a wave of protests erupting in Kazakhstan, the second-largest Bitcoin mining hub.  As reported by U.Today, the country’s government imposed a nationwide internet shutdown to quell unrest, forcing local miners to switch off their equipment.    

According to data provided by Coinwarz, the network’s hashrate has now dropped to 165 EH/s after peaking at 229 EH/s on Jan. 1.

Related

Bitcoin breaking below a pivotal support level  

Mark Newton, managing director Fundstrat Global Advisors, notes that $45,655 was an important support level for Bitcoin.

Now that it has been violated, the flagship cryptocurrency appears to be on track to dip below the $40,000 level for the first time since September 2021.
 

Advertisement

Related articles

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD