The price of bitcoin briefly fell below $40,000 on Monday, a session low since late September. At 3:45 p.m. the cryptocurrency was giving up 2.6% to about $41,198, moments after hitting a low since September at $39,663.18. An amount now far removed from the all-time high of $68,500 reached last November.
Two phenomena explain the fall of this digital asset. First, a potential change in the Fed’s policy. Holders fear that the U.S. central bank will end up raising its key rates sooner than expected, to fight inflation. A policy that strengthens the dollar and encourages investors to buy safer assets, leaving aside riskier assets like cryptocurrencies.
Another problem is the energy crisis. Several countries, such as Kosovo, have banned mining, which is considered too power-hungry. Kazakhstan, which has become the world’s leading producer (65%) since the Chinese ban, is now under severe pressure after the sharp rise in gas prices.