Bitcoin Crypto Price Hits Lowest Since September

Bitcoin Price

Bitcoin might reach $30K or $100K this year, according to an analyst who warns that the “next few months are critical.”

BTC/USD fell to its lowest level since September overnight, reaching $40,938 on Bitstamp, the cryptocurrency exchange.

In the beginning, the pair had rallied above $42,000, but then began a new slide that took it past the floor reached during December’s liquidation cascade.

Traders were speculating about the possibility of a similar occurrence repeating, with some predicting a drop as low as September’s $30,000 lows, among other things.

Popular Twitter trader Crypto Ed cautioned that the market “may possibly fall lower with a liquidation wick, below September lows” as part of his most recent prediction.

Bitcoin, at its present values, also appeared to be threatening to disappoint trader Anbessa on a daily period.

Commentators suggested that the macroeconomic odds were stacked against Bitcoin and cryptocurrency, with headwinds stemming, among other things, from events in Kazakhstan, which is home to an estimated 18 percent of Bitcoin’s hash rate.

Political unrest in Kazakhstan is having a negative impact on the country’s massive bitcoin mining economy.

As a result of violent protests triggered by soaring fuel costs, the Central Asian nation has been thrown into anarchy, with dozens murdered and hundreds injured. As a result of the chaos, internet and telecoms service has been reported to be down across the country — and this is having an influence on the region’s bitcoin mining operations, which are among the largest in the world.

Kazakhstan grew in popularity as a mining destination last year as a result of China’s crackdown on the industry, which the Chinese government justified as vital to preserve the country’s attempts to cut carbon emissions.

Cryptocurrency mining is a time-consuming process that involves the creation of new currencies and their introduction into circulation. Mining is the process of adding a new “block” to the blockchain by using high-performance computers to solve complicated mathematical puzzles and solve them quickly. Mines demand tremendous computer power and electricity, and Kazakhstan’s abundant energy resources have made it a viable alternative to China for miners looking to relocate there.

As of August last year, the Cambridge Centre for Alternative Finance reported that Kazakhstan had a hashrate that accounted for over 18 percent of the worldwide Bitcoin network’s total hashrate, the most recent month for which statistics was available. This is only second to the United States in terms of population. According to CoinDesk, hashrate is a term that refers to the entire amount of processing power that is being used to mine cryptocurrency.

The protests in Kazakhstan began as a result of an increase in the price of gasoline. According to Human Rights Watch, there are also other long-standing issues at the root of the public outrage, such as financial inequality and economic hardship, which have all been worsened as a result of the coronavirus outbreak.
As a result of this rebellion, Anirudh Rastogi, founder of IT law firm Ikigai Law, which works with cryptocurrency exchanges in India, believes that miners may now look for alternative locations to conduct their operations.

“It will ultimately come down to miners identifying the most appropriate hub for their operations,” he said. “They require a location with political stability as well as affordable electricity.”

Already, according to a report published in November by the Financial Times, Kazakhstan is struggling to keep up with the massive demands placed on its energy grid as a result of the rise in cryptocurrency mining. As a result of power shortages in the country, a major crypto mining farm has been forced to close.

According to Rastogi, such issues in big crypto-hubs may compel the industry to expedite the adoption of more sustainable mining technology, which consumes far less electricity, in order to combat the problem.

This week, as a result of widespread internet failures across the country, hash rate estimates began to show an abrupt drop of roughly 20 exahashes per second (EH/s) from what had previously been all-time highs of 192 EH/s, invoking the same effect as the Chinese miner exodus of last year.