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The US Federal Reserve made comments that caused the price of the digital currency to fall to their lowest level in months.
The digital coin's value dropped from $42,000 to less than $42,000 per coin.
Minutes from the Federal Reserve's meeting suggested it may raise interest rates.
Concerns about the network's capacity have been raised by political events.
It is difficult to attribute a rise or fall in the price of the digital currency to a single cause. The Federal Reserve's December meeting notes have been pointed to as a factor.
The minutes suggest that America's central bank might raise interest rates sooner than some had thought.
Traditional investors who hold Bitcoin could be affected by that.
A lot of the world's Bitcoin mining takes place in the country of Kazakhstan.
The huge Central Asian country has been hit with political unrest this week, as citizens took to the streets to protest against rising fuel prices. The country's leaders paint demonstrators as "rioters" and they seized buildings in the capital city.
cheap electricity is thought to be the reason why Kazakhstan is thought to process nearly a fifth of all Bitcoins. The internet shut-down appeared to affect the processing power of the entire network.
The price of the coin was over $50,000 per coin.
It began to fall to around $46,000 by the end of the week.
The Federal Reserve minutes were released on Wednesday.
The price dropped to around $42,000 by Thursday.
It hit a low of $41,000 on Thursday before recovering slightly.
The price of the digital currency has fallen to its lowest point since September 2020.
The price of other cryptocurrencies has fallen. In 24 hours, the price of ether dropped from over $3,800 to under $3,200.
Matthew Dibb from Stack Funds told the news agency that inflationary concerns and rate hikes are at the forefront of speculators' minds.
There is a chance of a retreat back to the mid 30s on the short term.
Critics continue to criticize thecryptocurrencies.
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January 6, 2022.
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The Mozilla Foundation, the group that makes the Firefox web browser, decided to stop accepting donations incryptocurrencies after users objected.
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