Fed announcements and events in Kazakhstan push cryptocurrency down

This Friday, bitcoin continued its decline (-1.92%) and hit its lowest level since the end of September, below 41,000 dollars against 69,000 at the highest in November.

Ozan KOSE AFP / Archivos

Text by: Altin Lazaj

2 min

Most cryptocurrencies continue their fall this Friday, with bitcoin in the lead.

The benchmark digital currency even fell below the $ 41,000 mark during the day, losing almost 40% of its value since November.

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In order to lower inflation in the United States, the US Federal Reserve hinted Wednesday that it could raise its key rates earlier than expected.

A policy that strengthens the dollar and raises bond rates.

This context is pushing investors to sell risky assets like cryptocurrencies to buy safer assets like US Treasuries.

If the Fed's announcements triggered the fall in cryptocurrency prices, the

against the government are rather an "amplifying" factor.

Kazakhstan, second country for bitcoin mining

The shutdown of the internet decided by the Kazakhstani regime caused a drop in global bitcoin mining capacities, which led to a drop in the prices of other cryptocurrencies. According to the Cambridge Center for Alternative Finance (CCAF), this Central Asian country has indeed become the second

center in the world after the United States: it concentrates 15% of global mining capacity. 

A place that Kazakhstan has won after the brutal ban

. The Middle Empire carried out 65% mining in the world. Several mining companies have therefore left China to take refuge in Kazakhstan, a neighboring country where electricity is inexpensive and the cold climate favors the cooling of computers. This is a huge advantage for these companies, as the mining activity of creating new units of digital currencies and securing their transactions is very energy intensive.

But political instability in Kazakhstan could push these minors to seek asylum elsewhere, such as in the United States, which has become the new El Dorado after the ban of this industry in China.

The reason: the country of North America offers electricity at attractive prices.

► To read also: Finance: record of illegal transactions carried out in cryptocurrency in 2021

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