Home News Bitcoin price drops below $43K

Bitcoin price drops below $43K

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On the night of January 6, the Bitcoin (BTC) price updated the local minimum at around $42,600 (according to TradingView). Over the past day, the quotes of the first cryptocurrency have decreased by 8%, according to CoinGecko.

At the time of writing, digital gold is trading near $43,000.

Thus, Bitcoin pulled the rest of the market with it. According to CoinGecko, all digital assets from the top 10 by market capitalization are in the red zone. During the day, the price of Ethereum fell by 11%, Solana fell by 12.5%, Polkadot – by 13.4%.

Strengthening of the economy and high inflation

Furthermore, the collapse occurred amid the background of news about the Federal Reserve System’s (Fed) readiness to raise the benchmark interest rate at an earlier date and at a faster pace than expected. In the previously published minutes of the December meeting of the Federal Open Market Committee (FOMC), the regulator links the decision with the strengthening of the economy and high inflation.

According to the report, some Fed officials noted that soon after the increase in the key rate; the Fed may have to start reducing the number of assets on the balance sheet.

Moreover, the protocol states that the rate of outflow of the balance sheet will be faster than in October 2017; when the regulator also curtailed the quantitative easing program.

Significant decrease in Bitcoin’s hashrate

At the same time, against the background of the Internet outage in Kazakhstan, there was a significant decrease in the hashrate of the Bitcoin network. After the ban on mining in China, many players in the sector transferred computing power to the country.

Recall that previously, Bitcoin mining manufacturing company Canaan announced expanding in Kazakhstan; after forging new strategic alliances with a number of cryptocurrency mining companies in the country.

The Nasdaq-listed firm stated that it has deployed 10,300 AvalonMiner units in Kazakhstan as of December 31, 2021. Also, it has completed the first phase of its deployment in Central Asia. As part of its desire to expand outside of China, Canaan is cooperating with local companies. On the other hand, the manufacturer refuses to name any of its local partners.

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