Bitcoin tumbles 40% from all-time high, falls to three months low

• The world’s largest cryptocurrency falls to $40,938, the lowest level since September 29

• Ethereum down 2.3 % and Solana down 4.7 %

Bitcoin fell to a three-month low late Thursday as the fed mentioned a hike of interest rates in the coming months and an internet outage in Kazakhstan, the world's second-largest bitcoin mining center.

The world’s largest cryptocurrency falls to $40,938, its lowest level since September 29. Since reaching a record high of $69,000 in November, bitcoin has lost more than 40% of its value. 

It was last trading at $42,652, down 1.3%, on Friday morning.

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The world's largest cryptocurrency began to plummet earlier this week as minutes from the Federal Reserve's December meeting suggested the US central bank will reduce its pandemic-era stimulus. The hawkish remarks sparked a sell-off in global financial markets, which spread to cryptocurrencies, CNBC stated.

Other digital currencies fell more on Friday, with ethereum down 2.3 % and solana down 4.7 %.

Read more: Bitcoin and other cryptocurrencies decline as the Fed confirms interest rate hikes

Binance Coin, Dogecoin, Shiba Inu, and Terra all saw losses ranging from 1.5% to 5.02 %.

CRYPTO SCAMMERS

According to a blog published on Thursday by blockchain analysis firm Chainalysis, cryptocurrency-related crime reached a new high in terms of value last year, with unlawful addresses receiving $14 billion in digital currencies, a 79 percent increase from $7.8 billion in 2020.

This is an 81 percent increase over 2020, a year in which scamming activity decreased dramatically compared to 2019, owing in large part to the lack of big-scale Ponzi schemes. 

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Finiko, a Ponzi scam predominantly targeting Russian speakers throughout Eastern Europe, altered that in 2021, netting more than $1.1 billion victims.

Chainalysis said illegal addresses already possess over $10 billion in cryptocurrency as of early 2022, with the bulk of this held by wallets involved with crypto theft.

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