Bitcoin was valued at excellent prices back in November, but the New Year was not so good for the most popular cryptocurrency in the world. There were some very major remains from China, the United States of America, Kazakhstan, and a significant country, India, in the life of a bitcoin. Let us say that the global factors are not in favour of bitcoins now, and therefore, the prices of bitcoins have been decreasing ever since.
When the bitcoin touched the highest price of $69,000 in November, people predicted it would lead towards the $75,000 mark. However, the same did not happen. People were optimistic, but their expectations were shattered when the prices started to decline and the rich to as low as $41,000 this Friday. Also, bitcoin exerts much pressure on the whole cryptocurrency space, making it an essential factor in valuing other cryptocurrencies.
According to the experts, the prices of bitcoins were standing at $41,515.35, which is about 40% lower than the $69,000 mark from November. However, the bitcoin optimists believe that it will increase soon. In January till date, the prices of bitcoins went as high as $47,000, which is a decrease of 12% from the last year’s closing prices on Immediate Bitcoin platform.
The crash in the prices of bitcoins is a triggering factor because of a couple of factors from different countries of the world. In December, Federal Reserve in the US raised a possibility of interest-rate fluctuations in March. However, now the significant factors led to the change in their decision, and they are about to bring about the regulation soon.
The misbalance of the $9 trillion balance sheet could lead to a severe effect on the global economy. Therefore, the United States of America is looking forward to regulating it soon.
The Internet shutdown in Kazakhstan has been a prominent reason behind the decreasing prices of bitcoin. People started to tell of the cryptocurrency assets because they could not purchase crypto coins in the country. Also, the world’s major nations are experiencing the selling of cryptocurrency as it’s just because the network is not working in Kazakhstan.
Kazakhstan has been a significant country for cryptocurrency mining operations. It comes second when it comes to cryptocurrency mining operations worldwide after the United States of America. However, due to the ban on the Internet in the last few days in Kazakhstan, the mining operations are entirely shut down.
Internet access has been hindered because the miners cannot add to the new block. Also, the hash rate is decreasing because the bitcoin network is not safe, leading to the price decline.
The crackdown of the bitcoin mining operation in June by China has led to a 20% decrease in the prices of bitcoins. Based on the global report, China was contributed 20% of the whole mining operations from the world. The United States of America contributed 30%, but Kazakhstan’s second position is now given.
As a result, some of the significant cryptocurrency mining companies shifted their operational location from China to Kazakhstan, which decreased mining operations for a certain period.
Because of the ban of cryptocurrency mining operations in China, there was about a 15% fluctuation in the prices of bitcoins on the downward slope, which is a significant factor to watch the clampdown of the market recently.
The industry of the global Times is not entirely based on the mining operations to computers but also the Internet. The electricity supply is as important as the Internet in cryptocurrency mining operations because it connects the global network.
If a cryptocurrency mining firm is not connected to the global bitcoin network, its actions are useless, putting the whole crypto space. Therefore, when Kazakhstan interrupted the internet supply, it was cut down from the whole bitcoin network globally, and it was useless for the world.
Also, due to the increasing negative factors to add the popularity of bitcoin and the decreasing prices, there is a lack of enthusiasm. On January 4, 2022, turn on several bitcoin liquidations today at about $4.8 billion across different exchanges.
It is an action because of the critical reasons affecting the prices of bitcoins. People are less optimistic about bitcoin, creating fear in their minds. Because of this, they are selling a large number of bitcoins and considering investing in other better options like the bonds issued by safe governments.