Against the backdrop of unrest in Kazakhstan, the hashrate of the Bitcoin network fell by 12%, and the capitalization of the cryptocurrency market fell below $ 2 trillion.
After China banned the mining of cryptocurrencies last year, miners began to move their equipment to other jurisdictions, including Kazakhstan. As of August 2021, Kazakhstan accounted for 18% of the global hashrate of the Bitcoin network.
Therefore, the shutdown of the Internet against the backdrop of increased protest moods in Kazakhstan led not only to disruption of communication between local residents, but also affected the global cryptocurrency industry, Fortune reports.
Larry Cermak, VP of Research at The Block, wrote on Twitter that a few hours after the Internet was turned off in Kazakhstan, Bitcoin’s hash rate dropped by 12%. The BTC price also fell sharply to a three-month low.
GlobalBlock analyst Marcus Sotiriou noted that the hash rate “is not directly related to the price of BTC, but provides insight into the security of the network, so a drop could scare investors in the short term.”
As of the morning of January 8, the rates of leading cryptocurrencies fell to multi-month lows. The price of BTC fell below $ 42,000 (-10.8% on the weekly chart), the value of ETH dropped to $ 3,219 (-13.3%), BNB – to $ 455 (-11.4%), and SOL – to $ 143.4 (-17%).
Some experts expect continuation of the downtrend. In their opinion, the BTC rate may fall to $ 37,500- $ 40,000. Over the past 24 hours, the cryptocurrency market capitalization has decreased by another 3.5%, falling below $ 2 trillion for the first time since September 2021.
While the current market correction is due in part to the stock market turmoil that began following the publication of the minutes of the US Federal Reserve meeting, some cryptocurrency analysts thinkthat you should not give in to panic. In their opinion, the market situation is similar to that observed in September 2021. For members of the crypto community, this can be an opportunity to buy crypto assets in the fall.
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