Cryptocurrency price

Cryptocurrency Price Check: “Don’t Count The Bulls Just For Now”

Cryptocurrency prices were down on Monday as the sector was hit by issues of rising interest rates and an internet shutdown in Kazakhstan.

Bitcoin was down 1.8% to $ 41,729, while Ethereum was down 3% to $ 3,996.77 and the meme dogecoin coin fell 4.9% to $ 0.141741 on the last check, according to Coindesk.

A combination of rising government bond yields, a firmer US dollar, and the shutdown of a key bitcoin mining capacity in Kazakhstan last week have all combined to push bitcoin prices higher in night exchanges.

“Chinese crypto-miners who rushed out of China and Kazakhstan last year are now paying the price for poor planning,” said David Lesperance, managing partner of immigration and tax advisor at Lesperance & Associates. “On January 5, in response to political protests, the Kazakh president shut down the Internet.

The lack of the internet means that miners cannot communicate with the bitcoin network, Lesperance said, and, as a result, “the hash rate collapsed as 12% of Bitcoin’s computing power became pouf! “

He noted that many Chinese crypto miners who have settled in the United States and other countries have encountered immigration issues.

Lesperance said keys to long-term success for crypto miners include access to energy, preferably green., and a politically stable jurisdiction that allows crypto miners to at least visit, if not work, the site’s location.

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Zak Killermann, fintech and crypto expert at Finder, said most of the major cryptos posted double-digit losses over the past week, “and a tough year could be ahead for cryptocurrencies, the Fed forecasting numerous interest rate hikes in 2022 “.

“At its peak, Kazakhstan accounted for almost 20% of the global Bitcoin hashrate,” Killermann said, “and with the situation still uncertain, there could be more turbulence in the price of BTC linked to Kazakhstan. But don’t count. not the bulls just yet. ”

He said bitcoin had had a crazy year in 2021, with highs nearly $ 70,000 in November and lows more than halfway, hitting a low in July at just under $ 30,000.

“With more involvement in retail, more opportunities for people to get involved and more globalization, BTC could experience a massive breakthrough in 2022 and take the crypto market with it,” he said. he declares.

Almost 7% inflation in the United States makes crypto an increasingly attractive investment, Killermann said, “and this week’s testimony from Fed Chairman (Jerome) Powell is a key event at to watch”.

Winston Ma, Managing Partner of CloudTree Ventures and author of Digital war – How China’s technological might is shaping the future of AI, blockchain and cyberspace, said metaverse and gaming-related tokens like Mana and AXS have suffered heavy token losses in the part of the broader sale of the crypto market.

Still, he said, market interests in the metaverse and games remain high, as GameStop (GME) – Get the Class A report from GameStop Corp. Shares surged on Friday after news that the video game retailer plans to create a market for non-fungible tokens (NFTs) and establish cryptocurrency partnerships.

“This correlation may just be emotional, but overall the gaming industry is emerging as one of the most powerful areas of crypto application,” Ma said. “Momentum. is extremely strong after Facebook changed its name to Meta to highlight its focus on the “metaverse,” as many believe that immersive and interactive play is closely related to the metaverse. “