Bitcoin (BTC), the decentralized digital currency, has fallen to its lowest level within months of reaching the all-time high. The crypto that had been sliding for some time fell even lower than $42,000 after the US Federal Reserve’s remarks.
Earlier this week, the crypto traded at $47,000, which has become less than $42,000 per Bitcoin. At around 4:35 pm UTC, Bitcoin traded at $41,115.60- the lowest since September.
At the time of writing, Bitcoin (BTC), down 1.282.90 points, trades at $41,800.80 (-2.98%).
The fall came within minutes of a meeting of the US Federal Reserve, wherein suggestions of a rise in interest rates were given. The political events of Kazakhstan are also credited with the fall in the Bitcoin price.
Release of Federal Reserve’s Meeting Notes
The global, decentralized currency’s price plunge cannot be attributed to any particular cause. However, many analysts believe that the Federal Reserve’s December meeting notes release could be a significant factor. On Wednesday, the meeting notes held in December were released, which suggest that the American Central Bank might raise the interest rates soon and sell off some of the assets.
The announcement may have negatively affected the traditional investors who held Bitcoin, and they might try chasing less riskier assets.
Also, a massive amount of the World’s Bitcoin mining takes place in Kazakhstan- which is now in political unrest because of a civil uprising.
What is Bitcoin Mining?
Bitcoin mining is the process by which transactions are verified and new “coins” or “currencies” made. Mining, in general, refers to the record-keeping service done through the use of a computer’s processing power.
Miners- the people who mine keep the blockchain consistent, complete, and unalterable.
How much time does it take to mine a Bitcoin (BTC)?
Generally, it takes about 10 minutes to mine a Bitcoin, assuming an ideal hardware and software setup. However, a more reasonable time duration is around 30 days for users with large setups to mine a single Bitcoin.
Kazakhstan unrest influencing Bitcoin (BTC)
The fatal violence in Kazakhstan in the name of protests has affected the massive Bitcoin mining in the country. The Central Asian country is thought to process or ‘mine’ around one-fifth of the world’s total Bitcoin because of the availability of cheap electricity in the country. The internet shutdown in the country also influenced the entire Bitcoin network.
Other cryptocurrencies have also dipped as the crypto market takes a blood bath. The Federal Reserve’s meeting notes have acted as a catalyst for the drop in the Bitcoin price, which was already tackling the supply-chain shortage and Covid-19 uncertainties.
With a huge market capitalization of $799.771 Billion and a circulating supply of 18.92 million, Bitcoin (BTC) is the most popular and heavily traded cryptocurrency. Previously, the crypto had closed at $43,152.97 and has a 24-hour trading volume of 65.31 billion.
The currency started back in April of 2013 and has taken massive surges. Earlier in November, Bitcoin had broken the $69,000 barrier and touched an all-time high. But since then, it has continued the slide.