Bitcoin (BTC) price drops to 3-month low

Chukrut Budrul/SOPA Images/LightRocket via Getty Images

Bitcoin Uneasy about the tightening of U.S. monetary policy and the Internet shutdown in Kazakhstan, the world’s second-largest Bitcoin mining center, Bitcoin fell to a three-month low late on Thursday.

According to data from Coin Metrics, just after 9pm Eastern Time on Thursday, the price of Bitcoin fell to $41,222.41, the lowest level since September 29. On Friday morning, it was last traded at $42,391.20, down 0.6%.

Earlier this week, the world’s largest cryptocurrency began to fall Minutes of the Fed’s December Meeting Hints that the U.S. Central Bank will cancel its stimulus measures during the pandemic.

Hawkish remarks triggered a sell-off in global stock markets and spread to cryptocurrencies. Bitcoin bulls usually describe it as an asset that has nothing to do with traditional financial markets, but experts have noticed that the price movements of Bitcoin and stocks are increasingly similar.

Other digital currencies continued to decline on Friday, Ethereum Down 2.3% and Solana A decrease of 4.7%.

Another piece of news affecting cryptocurrency prices is The President of Kazakhstan decides to shut down Internet services After a deadly protest against the government.

Central Asian countries account for 18% of Bitcoin network processing capacity, according to Cambridge Centre for Alternative Finance. Many crypto miners Fleeing from China to neighboring Kazakhstan Regarding Beijing’s ban on virtual currency mining.

It is estimated that the Internet shutdown in Kazakhstan has caused up to 15% of the Internet to go offline.

Marcus Sotiriou, an analyst at GlobalBlock, a British digital asset broker, said that Bitcoin’s computing power “has no direct relationship with the price of Bitcoin, but it shows the security of the network, so a drop in the short term may scare investors.” Thursday’s notes.

-CNBC’s Mackenzie Sigalos contributed to this report

.