The currency is on display.
LightRocket via a photo by Rafael Henrique/SOPA Images.
There were concerns over the Federal Reserve's recent policy outlook and the political upheaval in oil-rich Kazakhstan.
The price of the world's biggest coin fell as much as 4.9% on Friday. In the last three days, the price of the digital currency has fallen by more than 10%, and is now roughly 40% of the record high it reached in November.
Nicholas Cawley, strategist at DailyFX, told Insider that "Bitcoin is testing another layer of technical support between $39,600 to $41,700 after breaking prior multi-week support around $45,500 with ease on Wednesday."
He said that a break below $39,600 would likely lead to further selling and could prop up prices going into the weekend.
The coins were trading lower. The second-biggest token had plunged more than 9%. Solana and binance coin fell.
The Fed's December meeting minutes showed that the US central bank could tighten monetary policy faster than previously thought.
More traditional investors may want to flock to investments that are less risky as this outlook affects the volatile assets.
Chris Kline, COO and co-founder of the Bitcoin IRA, told Insider that this is a good time to sell as markets look to adjust to new monetary policies and inflation concerns. Inflation is not going away anytime soon and investors are looking to protect themselves from higher prices and rapidly changing economic conditions, and seecryptocurrencies as a potential hedge.
The political unrest caused a decline in the global computing power of the digital currency. The internet was shut down.
After the internet went down, the rate of the digital currency's "hard fork" dropped by 12%.
The Cambridge Centre for Alternative Finance said that the second-largest center for mining the digital currency was in Kazakhstan.
Marcus Sotiriou, analyst at digital asset broker GlobalBlock, said in a note Thursday that a fall in the price of the digital asset could cause investors to be cautious.
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Business Insider has an original article.
