On Friday, Bitcoin, the original cryptocurrency, had taken a teetering header of 5 per cent, hitting the lowest since September amid a broad-based sell-off breeze in context of a growing discontent over an ultra-hawkish US Fed monetary policy.
In the latest flashpoint of a steep downward spiral in Bitcoin prices, which had shrugged off more than a whacking 40 per cent since hitting a record $69,000 in November last year, this week’s slumps in Bitcoin prices were almost entirely catalysed by a shutdown of internet services in Kazakhstan, as a mob unrest had taken a greater toll on the nation’s rapidly growing crypto mining industry.
Nonetheless, as a countrywide mob unrest in Kazakh appeared to have calmed down a day after deployment of Russian paratroopers, Bitcoin gained some grounds late in the day. Aside from that, since Wednesday’s FOMC Minutes, bitcoin had been facing off a tremendous scale of sell-off pressure, as minutes from Dec 14-15 US Fed policy meet had unveiled that the policymakers had been contemplating a faster-than-anticipated rate hike to tame a tarnishing inflation-surge, eventually sending shockwaves on cryptocurrencies which many investors began to mull as a hedge against a higher inflation over recent months.
Bitcoin flounders to more than three-month lows
Citing statistics, while this report was being prepared (GMT 20.00) during late-afternoon US trading, Bitcoin was scuffling 3.11 per cent lower to $41,714.90 after jolting over 5.0 per cent to $40,600.8 earlier in the day, while Bitcoin’s smaller rival Ethereum was trading 6.63 per cent lower to $3,195.90 and Litecoin shed 1.90 per cent to $132.90.
Meanwhile, as crypto assets have been wallowing near their three-month lows as of late-afternoon US trading session, Chief Operating Officer (COO) of a Singaporean crypto platform Stack Funds, Matthew Dibb said, “We are seeing broad risk-off sentiment across all markets currently as inflationary concerns and rate hikes appear to be at the forefront of speculators' minds.
Liquidity in BTC has been quite thin on both sides and there is risk of a retreat back to the mid-30's on the short term. ”