Bitcoin fell as much as five percent on Friday to its lowest level since late September.
Bitcoin fell as much as five percent on Friday to its lowest level since late September, amid a cryptocurrency sell-off fueled by concerns about tighter US monetary policy. Bitcoin last fell more than three percent to $ 41,704 after touching $ 40,938, its lowest level since Sept. 29, as a mix of US payroll data fueled some bargain purchases.
The world's largest cryptocurrency has lost more than 40 percent since it hit a record high of $ 69,000 in November, and the volatility that has plagued it since its birth 13 years ago is still stubbornly present.
The global computing power of the bitcoin network has dropped dramatically this week following the internet shutdown in Kazakhstan due to an uprising that hit the country's fast-growing cryptocurrency mining industry.
Bitcoin has also come under pressure after minutes from the latest US Federal Reserve meeting, released on Wednesday, appeared to lean toward more aggressive political action, sapping investors' appetite for riskier assets.
"We are seeing broad sentiment of risk aversion across all markets currently as inflationary concerns and rate hikes seem to be on the minds of speculators," said Matthew Dibb, COO of cryptocurrency platform Stack Funds from Singapore.
"Liquidity in BTC has been quite tight on both sides and there is a risk of a pullback to the mid-30s in the short term."
Ether, the second-largest token by market cap, fell as much as 8.6 percent to $ 3,114, its lowest level since Oct. 1. The last time it traded lower it was more than six percent at $ 3,200.
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