On the night of January 6, the bitcoin price updated its local minimum at around $ 42,500 (on the Binance exchange). Over the past day, the quotes of the first cryptocurrency decreased by 7.5%, according to CoinGecko.
At the time of writing, digital gold is trading near $ 43,150.
Bitcoin pulled the rest of the market with it. According to CoinGecko, all digital assets from the top 10 by market capitalization were in the red zone. During the day, the price of Ethereum fell by 9.9%, Solana fell by 12.2%, Polkadot – by 12.5%.
The crash came amid news of readiness The fed raise the base interest rate earlier and faster than expected. In previously published protocol At the December meeting of the Open Market Committee (FOMC), the regulator associates 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 begin to reduce the volume of assets on the balance sheet.
The minutes indicated that the rate of outflow of the balance sheet will be faster than in October 2017, when the regulator also curtailed quantitative easing program.
Traditional markets reacted negatively to the Fed’s statement. Stock index S&P 500 (SPX) fell by almost 2%, Dow Jones (DJI) – by 1.07%. The tech sector’s response has been particularly painful – index Nasdaq Composite (IXIC) collapsed by 3.34%.
In parallel with this, against the background of the disconnection of the Internet in Kazakhstan, there was a significant decrease in the hash rate of the bitcoin network. After the mining ban in China, many players in the sector moved their computing power to the country.
Internet has been down in Kazahstan for a few hours where roughly 18% if Bitcoin’s hashrate is.
Looks like the impact on the hashrate is so far 12% drop just in the last few hours since internet went down. pic.twitter.com/FcTDsJ6R77
– Larry Cermak (@lawmaster) January 5, 2022
According to Larry Chermak, vice president of research at The Block, about 18% of the hashrate of the first cryptocurrency network is concentrated in Kazakhstan. According to BTC.comOn January 5, the performance of some mining pools did actually decline.
At the time of writing, bitcoin hashrate is at 177.85 EH / s, which corresponds to the level of May 2021.
Recall that in December billionaire Louis Navelier allowed bitcoin to fall to $ 10,000. According to him, the signal for the formation of a “double top” is strengthening on the chart of the first cryptocurrency, the implementation of which may occur as the Fed normalizes monetary policy.