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Learn about the main reasons behind the drop in the price of Bitcoin to the level of 42 thousand dollars

Learn about the main reasons behind the drop in the price of Bitcoin to the level of 42 thousand dollars

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Answer Learn about the main reasons behind the drop in the price of Bitcoin to the level of 42 thousand dollars

Bitcoin price dropped to a daily low of $42,412 on the Bitstamp trading platform, which recorded a daily drop of 7.1%.

Currently, the crypto king is struggling to recover, and is currently trading at $42992.

Alternative cryptocurrencies have been hit even deeper, with Solana (SOL), Terra (LUNA) and Polkadot (DOT) reporting double-digit losses.

The Federal Reserve makes investors nervous in the stock market:

Perhaps the most important reason for the decline of the crypto market, like the rest of the financial markets, is the meeting of the Federal Reserve, which met yesterday, Wednesday, and showed that the central bank may raise interest rates as soon as possible and set the month of March to do so.

Read:A new partnership between Binance platform and the (Link) project in the field of financial decentralization

The news from the reserve affected US stocks and made them fall sharply.

The Nasdaq Composite Index focused on technology stocks, known for its strong relationship with Bitcoin, fell 3.34% to close at 15,100.

Shares of “Nvidia”, “AMD” and “Adobe” fell more than 5%.

The Dow Jones Industrial Average and S&P 500 Index also closed in the red.

The outbreak of protests in Kazakhstan:

Bitcoin is also facing other headwinds in the crypto-mining sector, due to the wave of protests that erupted in Kazakhstan, the second largest Bitcoin mining hub.

The country’s government imposed a nationwide blackout to quell the unrest, forcing local miners to shut down their equipment.

According to data provided by Coinwarz, the network hash rate has now fallen to 165 EH/s after peaking at 229 EH/s on January 1.

Bitcoin breaks important support:

Mark Newton, an analyst at Fundstrat Global Advisors, notes that the $45,655 level is an important support level for Bitcoin.

Now that it has bottomed below that level, it is possible that Bitcoin is on its way to falling below the $40K level for the first time since September 2021, and this scenario is in place if Bitcoin doesn’t quickly rebound to levels above $45,000.

Read:Malaysia is building its first crypto city and aims to attract 3 million tourists

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