Bitcoin has been below the $ 40.000 slab for several days, after hitting highs of more than $ 58.00 on November 8. Thus, Bitcoin has lost $ 18.000 in value, or a third of it, in just two months.
The cryptocurrency has sold strongly this morning, while rival tokens such as Ethereum have also lost value. With a current value of $ 39.831 per coin, bitcoin has lost 4,3% of its value and Ethereum 5,1%, according to data from Coinbase.
Bitcoin continues to decline in value
Yahoo Finance indicates that the recent all-time high for bitcoin caused the cryptocurrency to trade at $ 68.789,62 per coin. Today's price places bitcoin's current drop at just over 42%. That's twice the swing required for bitcoin to enter a technical bear market, and four times what it would take to qualify for a correction.
While it's a notable drop, analysts don't think it's the end of the decentralized world that cryptocurrencies preach. NFT trading volumes on OpenSea are strong to start the year, and web3 activity appears strong by some measures.
But much of this drop in Bitcoin's value below $40.00, especially in recent days, is most likely due to the protests in Kazakhstan . These protests, which attracted a large number of miners and accounted for 18% of global mining activity due to the low cost of electricity, drove up prices for residents. To mitigate the effects of mining, Kazakhstan shut down all internet connections, and suddenly the global mining network lost a fifth of its potential, concentrated in a country of six million inhabitants. This demonstrated just how susceptible the price of Bitcoin can be if a small country decides to cut off miners' internet access.
Source: Tech Power Up
