In the wake of the equity markets, bitcoin is falling in reaction to the Fed’s latest debriefing. The tense situation in Kazakhstan is also involved.
It is again the tumble for bitcoin. This Thursday, in the first Asian exchanges, the most famous cryptocurrency is fallout up to $ 42,505, before stabilizing around $ 43,000. This is its lowest level since the “flash crash” at the beginning of last month, when it fell more than 20% in one day, to 42,296 dollars.
D’other cryptocurrencies have also accused the blow, like theether, the second largest in terms of capitalization. Its price fell by more than 10% to fall to a level that had not been seen since last October.
“Kickbacks in cryptos tend to treat them as exclusively risky assets, despite longer-term trends around inflation.”
Fed and Kazakhstan involved
This new plunge comes in parallel with the almost general decline in the equity markets on Thursday, in the wake of the publication on Wednesday evening of the minutes of the last meeting of the Federal Reserve (Fed), which demonstrate its desire to tackle inflation head-on. She questions once again the bitcoin’s “safe haven” status defended by some of his supporters. “Reflex reactions in cryptos tend to treat them as exclusively at risk assets despite longer-term trends around inflation, ”explains Stéphane Ouellette of the FRNT Financial platform.
Some also point the finger at the tense situation in the Kazakhstan, where riots left dozens dead. The country is the second largest in the world for cryptocurrency mining. Bitcoin’s hashrate, the hash rate that measures the mining power of computers connected to the network, fell by more than 10% on Wednesday after the internet was cut there. On the stock market, several mining companies have also paid the price, such as Bitfarms
, Riot Blockchain
or Hut 8 Mining
, all listed on the Nasdaq.