Bitcoin Slumps To Lowest Level In Four Months

The world’s largest cryptocurrency, Bitcoin, has plummeted in value amid a broader sell off for cryptocurrencies.

On Friday Bitcoin slumped as much as 5 percent to its lowest since late September, tumbling under $41,000. Bitcoin was down 3.7 percent after touching $40,938, its lowest since 29 September Reuters reported.

However, at the time of writing, Bitcoin is currently trading at $42.430, but that is still down 1.52 percent.

Bitcoin decline

Bitcoin has lost over 40 percent since hitting a record high of $69,000 in November, and the 40 percent decline demonstrates the extreme volatility that has plagued the cryptocurrency since its birth in 2009.

This volatility, coupled with the criminal usage of cryptocurrency, has hardened the stance against it by many major central banks around the world.

This week new Scientist data revealed that 12 of the UK’s 48 police forces have seized bitcoin and other cryptocurrencies worth £322 million during criminal investigations during the past five years.

And blockchain analysis firm Chainalysis on Thursday warned that cryptocurrency-linked crime surged to a record high last year in terms of value in 2021, with illegal addresses receiving $14 billion in digital currencies, up 79 percent from $7.8 billion in 2020.

Crypto blows

But the Bitcoin decline comes amid a widespread decline in cryptocurrencies this week, caused by a number of blows for all digital currencies.

This decline has been triggered after the minutes of the latest US Federal Reserve meeting were released on Wednesday appeared to show the US financial regulator is preparing to adopt a more aggressive policy action against crypto, sapping investor appetite for riskier assets, Reuters noted.

Another blow for cryptocurrencies came when Kazakhstan, which is one of the world’s (alongside the US) biggest crypto mining countries in the world, this week shut down its internet amid an uprising.

Also the balkan country of Kosovo, just to the south of Serbia, has officially banned cryptocurrency mining.

The country reportedly took the decision to ban the mining of cryptocurrencies as it battles energy crisis caused by soaring global prices.