Bitcoin extends decline to $40,000

Bitcoin declined on Friday for another session, hitting the barrier of $40,000 once more as investors shun risks while waiting for results from ongoing Ukrainian peace negotiations.

Bitcoin has sustained continuous losses since the Fed's decision to hike rates by 25 basis points on Wednesday.

At Bitstamp, Bitcoin fell $894.3, or 2.2% to $40,068, with an intraday high at $40,97, after closing down 0.5% yesterday on profit-taking away from week highs at $41,693.

Crypto market value fell $30 billion on Friday to a total of $1.8 trillion as most major cryptocurrencies decline.

The Fed warned from worldwide ramifications from the Russian invasion on Ukraine, however the specific impact on the US economy is still to be seen.

On the short term, inflation obviously is expected to hammer the US economy and weigh on growth.

Analysts expect Bitcoin to hover around $40,000 for the time being as a base that might lead to further gains down the line.

Most high risk assets declined on Friday as investors await developments in negotiations for Ukrainian peace.