The prices of cryptocurrencies are experiencing saturation because of the different factors leading to the global collapse. Recently, in December, a meeting was held in the Federal Reserve of the United States of America, which says that they will increase the interest rates. However, after bitcoin reached a price level of $47,000, it again went down to the $42,000 mark. Bitcoin was valued at $42,000 this week, which is the lowest after the release of Federal Reserve meeting details in the market. Also, some of the reasons that led to the differentiated political events in Kazakhstan have led to a massive impact on the bitcoin network’s capacity. As a result, there are various concerns among the authorities of Kazakhstan that bitcoin may cause a severe threat to the global economy. Therefore, they need to take serious actions regarding it.
As cryptocurrencies like bitcoins are decentralised and not controlled by any government of the world, the prices decrease or increase our entry, Sybil. We can never be sure about the reasons leading to the increase or decrease in the prices of bitcoins, but still, there can be some predictions. Some of the experts believe that the reason for the increase in prices of bitcoins was the Federal reserve’s December meeting notes. However, some believe that it is nothing to do with the December meeting because the price increase will come in the commodities regulated by the government and not in cryptocurrencies. Therefore, there is political unrest among the different authorities and different nations of the world regarding these digital coins, and it is a severe problem for the crypto space.
However, even though the Federal Reserve of the United States of America said it would raise the interest rates sooner, they tend to do the same earlier. They look forward to decreasing the inflation which is taking over the market all over the United States of America. Due to the announcements made in the Federal Reserve of the United States of America are some of the traditional investors who are holding large amounts of bitcoins believe that they are under pressure less risky assets. They believe it will be entirely out of the government influence, and therefore, they are not expected to remove their investment from cryptocurrencies like bitcoin.
Kazakhstan has been an important centre for cryptocurrency mining operations after the ban of mining operations in China. Most of the cryptocurrency mining companies are shifted from China to Kazakhstan, and therefore, it became a centre for these operations on sites like Immediate Edge. However, there was substantial political unrest recently in this massive Central Asian country. It has led to many citizens protesting against the rising fuel prices. However, the government has been failing to specify the reason behind the increase in prices of fuels even though the exports have not been increased. Some experts believe that it is all happening because of many cryptocurrency mining operations. As a result, Kazakhstan’s largest city has been under protest, and therefore, many buildings have been seized.
Kazakhstan has been an important centre for cryptocurrency mining operations because it contributes about 1/5 of the total currency mining operations worldwide. However, due to the increasing protests from the citizens, the internet facility has been shut down in the country. Therefore, being a major centre for cryptocurrency mining operations and the recent internet shutdown has hit the bitcoin network to a large extent. After the electricity shut down, the following things happened in the crypto space.
- In the initial stages of the week, the prices of bitcoins were standing at $47,000 per bitcoin. But in the middle of the week, they went down to $46,000.
- On Wednesday, the Federal Reserve released the minute is that they are about to increase the interest rates faster than the specified earlier. Therefore, the prices of bitcoins sharply fell to $42,000 on Thursday.
- It also went down to $41,000 towards Thursday’s ending but recovered slowly for some unspecified reasons.
The recent prices of bitcoins are standing at $42,000, which says that it is the lowest after September 2021. Even though it reached a price level of $69,000 in November, it started to decline after that. The other cryptocurrencies are also experiencing a decrease because of the falling value of bitcoin. For example, ETH is standing at about $3200 in the market, earlier at $3800 on Wednesday. It is not confident if the bitcoin prices will recover soon or not face a significant impact from Kazakhstan’s political unrest.