The Fed may increase interest rates even faster than previously thought, and unrest in Kazakhstan is affecting Bitcoin's hash rate.
It came after detailed minutes from the latest Federal Reserve meeting indicated that the U.S. will raise interest rates even faster than previously thought.
Although the coronavirus pandemic is continuing to wreak havoc, with the Omicron variant causing infections to spike around the world once again, central banks are especially concerned about high rates of inflation.
But the Fed's efforts to tighten monetary supply and end COVID-related stimulus measures could make stocks and cryptocurrencies less attractive as investments.
There have been concerns that the correlation between stocks and cryptocurrencies has been growing in recent months.
Is Kazakhstan a Factor?
Another bearish factor may be linked to the ongoing unrest in Kazakhstan, where there have been violent protests triggered by a sudden increase in energy prices.
Public buildings have been set alight and the entire government has resigned, with the country's president declaring a two-week state of emergency.
Kazakhstan has taken a larger share of Bitcoin's hash rate in the aftermath of China's clampdown — and according to the Cambridge Center for Alternative Finance, it's now the second-biggest country in the world for mining.