The value of Bitcoin fell to the lowest level in more than five months since August last year on the back of tumbling cryptocurrencies globally, according to a report by Bloomberg.
The largest cryptocurrency dropped as much as 7.4 percent to Ksh.4,343,177.
According to Bloomberg, digital tokens (cryptocurrencies) overall have shed some Ksh.113.5 trillion in value since a November peak.
“Bitcoin and the broader crypto market remain subject to the whims of macro variables,” Fundstrat Digital Asset Research strategists Sean Farrell and Will McEvoy wrote in a note.
Virtual coins have become emblematic of a retreat in speculative investments sparked by the prospect of tighter monetary policy in the U.S.
Other cryptocurrencies also dropped, such as Binance Coin, Cardano and Solana.
The possibility that Bitcoin slumped might be due a breather based on a weekly momentum indicator.
It has soared in the past several years, partially on controversial narratives around institutional adoption and its possible role as a portfolio hedge.
Bitcoin is up more than fourfold in the past two years but has shed about Ksh.3 million since reaching a record high in November of almost Ksh.6.8 million.
Sixteen percent of Kenyan adult internet users, an estimated 4.8 million people, own cryptocurrency, according to Finder.com’s latest Cryptocurrency Adoption Index which is based on an online survey of 52,883 people across 27 countries.
This is slightly higher than the global average of 15 percent, with Kenya ranking 12th out of the countries included in the study.
Cryptocurrency ownership in Kenya is behind countries like Nigeria (21%) and Ghana (17%), but ahead of countries like Argentina, Mexico, and Venezuela (15% each) and Brazil (14%).
Bitcoin is still the most popular coin to have (9%), followed by Ethereum and Dogecoin (3% each).