Bitcoin Slips To Five-Month Low Amid Wider Selling Environment | Economic news

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Bitcoin fell below $ 40,000 (£ 29,480) to its lowest level since August amid a wider sell-off of risky assets – including some of the biggest names in the tech industry.

The world’s largest cryptocurrency briefly fell to $ 39,558 (£ 29,154) as it fell more than 5% on Monday, adding to a drop seen last week.

Bitcoin surged last year amid rising demand from traditional investors, and hit a record high of $ 69,000 (£ 50,854) in November.

This was despite regulatory restrictions, especially from China, and continued warnings from authorities around the world about the risks associated with such investments.

But cryptocurrencies were caught in the selling pressure on risky assets earlier this year, which has to do with expectations about the pace of interest rate hikes in the United States.

The recent Bitcoin slowdown has also been partly linked to the unrest in Kazakhstan, which is the second largest location in the world for so-called “mining” of Bitcoin, the energy-intensive computer process by which tokens can be harvested.

The wider stock markets were also down on Monday, especially among US-listed tech companies – with the Nasdaq down more than 2%.

Apple was down 2% and Meta, owner of Facebook, Instagram and WhatsApp, fell almost 5%, while Amazon was down more than 3%.

Bitcoin partially recovered later in the session, as did stocks.

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4:36 What’s going on in Kazakhstan?

Tech stocks have skyrocketed over the past two years, in part because of ultra-low interest rates.

Goldman Sachs now expects the US Federal Reserve to hike rates four times this year as officials seek to tackle soaring inflation.

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