Against the background of unrest in Kazakhstan, which has been going on for several days, the crypto market fell, and it fell significantly: over the course of a day, the capitalization of all cryptocurrencies in the world decreased by almost 6%.
At the time of this writing, Bitcoin fell by 5.6%, and this is a fall from already low levels: now for 1 BTC they give about 43,400 dollars. Ethereum fell even more over the course of the day – by about 7.3% (to $ 3,500). In general, all cryptocurrencies fell into the top 10, and outside the top ten the situation is similar. Even Chainlink, which had been growing against the backdrop of a falling market, is falling.
After China outlawed cryptocurrencies in the first half of 2021, many large Chinese crypto-mining companies moved to Kazakhstan – this was facilitated by both geographic proximity and the low cost of electricity in the country. Very quickly Kazakhstan became the second largest Bitcoin producer in the world, providing about 18% of the world hash rate.
But the riots that broke out at the very beginning of January are now accompanied by a power outage and the Internet, which, of course, slows down the mining of Bitcoin and reduces the income of miners. Against the background of such an unstable situation, miners may begin to leave the country, and in general, the situation will negatively affect the global Bitcoin hashrate.