According to recent news, fall in the Bitcoin prices has been observed this month. This drop has been seen after the remarks from the U.S. Federal Reserve. Earlier this week, the value of cryptocurrency was $47000 however, its value has been dropped to $42000 per Bitcoin, after the comments from the Federal Reserve. Bitcoin investors has seen this drop during the mid week. The Bitcoin has hit to its lowest price since September 2021, there is almost 40% drop is the Bitcoin prices compared to the highest which was $69,000 in November 2021. Moreover, other cyptocurrencies such as Ethereum also noticed fall in their prices.
According to the meeting notes released by the Federal Reserve, the interest rates might also increase. Also, during the political events in Kazakhstan, raised concerns regarding the network capacity of cryptocurrencies. As Kazakhstan holds fifth position in average monthly share of global Bitcoin mining. Because of the internet failure, Bitcoin network got impacted.
Since, cryptocurrencies are more decentralized in nature and it allows peer to peer network for successful and secure transactions of cryptocurrencies. Although, it is difficult to attribute rise and fall of Bitcoin prices to single cause.
The minutes suggest that America’s central bank might raise interest rates sooner than some had anticipated, and sell off some of its assets. Source.
This has been anticipated that raise in interest rate might affect the traditional Bitcoin investors. As they might look for the assets to purchase which are less risk prone.
Know more: How to choose right hardware wallet for your crypto assets?
