Prices are now 40 percent down from the November high.
things are looking depressed for cryptocurrency.
Bitcoin was hit by a sharp drop in price on Wednesday, after a crackdown in Kazakhstan – the second largest Bitcoin mining center after the United States in the world, Reuters Reports. Prices dropped Less than $42,000 on Thursday, Which It means that anyone who bought at its recent high of $69,000 in early November has now dumped it.
Behind the price drop is a series of violent revolutions in the former Soviet republic, driven in part by the country’s president, Kassym-Jomart Tokayev, who has ordered security forces to “Kill without warning” to suppress protesters. On Wednesday, the government imposed a nationwide internet blackout that lasted eight hours — and stopped any cryptocurrency mining in its tracks.
the ban It led to a decrease in “hash rate,” a term used to describe the amount of computing power a cryptographic network uses. Larry Cermak, Vice President of Research at crypto news site The Block, tweeted this Bitcoin hash rate decreased By 12 percent in the hours after the internet was cut off in Kazakhstan.
While There may be fewer bitcoin miners seem As if it were actually a boon for prices – after all, a lack of supply could mean that bitcoin prices should go up – the opposite appears to be true. The crackdown appears to have scared investors enough to start selling their bitcoins, sending it down.
Same story as HODL
The problem in Kazakhstan is not the only thing fueling the downfall. News looming about the US Federal Reserve Consider raising interest rates It was enough to drive prices down across a wide range of asset classes, from cryptocurrencies to stocks.
Taken together, it’s a perfect storm that has caused investors to hesitate about whether or not to put their money into riskier assets. If history is any indication, the market usually bounces after dips like this.
Regardless, it’s important to keep perspective: This may just be a month or so for you. But for others, it is the bloody culmination of a violent upheaval against an authoritarian regime. Maybe it’s not really going down who – which Bad when you think about it.
Read more: Bitcoin network capacity plummets due to Kazakhstan crackdown on crypto miners [Reuters]
More about bitcoin: Mozilla founder panicked over browser invasion of cryptocurrency
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