Beautiful Virgin Islands

Thursday, Sep 04, 2025

Bitcoin prices fall to lowest in months after US Fed remarks

Bitcoin prices fall to lowest in months after US Fed remarks

Bitcoin prices have fallen to their lowest level in months following remarks from the US Federal Reserve.

The crypto-currency dropped in value from $47,000 (£34,700) earlier this week to less than $42,000 (£31,000) per digital coin.

It follows minutes from a meeting of the Federal Reserve, which suggested it may raise interest rates.

Political events in Kazakhstan have also raised concerns about the network's capacity.

Because of its global and decentralised nature, attributing a rise or fall in the price of Bitcoin to a single cause is difficult. But many commentators have pointed to the release of the Federal Reserve's December meeting notes as one factor.

The minutes suggest that America's central bank might raise interest rates sooner than some had anticipated, and sell off some of its assets.

That could have led to a knock-on effect of traditional investors who hold Bitcoin, as they pursue less risky assets instead.

At the same time, a huge amount of the world's Bitcoin mining - the process by which transactions are verified and new "coins" made - takes place in Kazakhstan.

The massive Central Asian country has been hit with political unrest this week, as citizens took to the streets to protest against rising fuel prices. Fatal violence followed as demonstrators - which the country's leaders paint as "rioters" - seized buildings in the largest city, Almaty.


Kazakhstan is thought to process nearly a fifth of all Bitcoin "mining", as the process is called, due to its usually cheap electricity. And an internet shut-down earlier this week appeared to hit the processing power of the entire Bitcoin network.

This is what happened:

* Bitcoin started the week at a price above $47,000 per coin

* That began to slip by mid-week to around $46,000

* On Wednesday, the Federal Reserve minutes were released

* By Thursday, the price fell sharply to around $42,000

* It hit a low of nearly $41,000 at one point on Thursday before recovering slightly

The dip means Bitcoin has hit its lowest price since September 2021, down from a November peak of more than $60,000.

Other crypto-currencies have also seen price falls. Ethereum saw its value drop from approximately $3,800 on Wednesday to under $3,200 on Friday.

Matthew Dibb from Singapore-based crypto-company Stack Funds told Reuters news agency: "We are seeing broad risk-off sentiment across all markets currently, as inflationary concerns and rate hikes appear to be at the forefront of speculators' minds."

He also warned that "there is risk of a retreat back to the mid-30s on the short term".

Crypto-currencies, and particularly Bitcoin, continue to face criticism.


The Mozilla Foundation - the group which makes the Firefox web browser among other open-source software projects - announced it would no longer accept crypto-currency donations after pushback from users.

The group has accepted crypto-currency donations for years, but a recent tweet reminding people of that fact led to an angry response, as the digital currency's energy use and unregulated nature continue to be controversial among many critics.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Queen Camilla’s Teenage Courage: Fended Off Attempted Assault on London Train, New Biography Reveals
Scottish Brothers Set Record in Historic Pacific Row
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Pickles are the latest craze among Generation Z in the United States.
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
WhatsApp is rolling out a feature that looks a lot like Telegram.
Investigations Reveal Rise in ‘Sex-for-Rent’ Listings Across Canada Exploiting Vulnerable Tenants
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
×