Bitcoin’s hash rate also crumbled down to 170.8 EH / s, something not seen since December. Tailings of the Kazakh conflict and papers from the FED keep affecting the price of BTC.
The price of bitcoin (BTC) keeps its downtrend this January, and it now trades above USD 42,200, expanding the losses that it has dragged since the end of December.
According to information reported by CoinMarketCap, the first cryptocurrency on the market has an average price of USD 42,255, which represents a decrease of 1.29% compared to the previous day, when it was trading at USD 42,800.
This amount appeared on September 29, 2021, the date when BTC was initiating a series of rises that, a few days later, made it mark a new all-time high of $ 68,000.
After subsequent declines, bitcoin traded between $ 49,000 and $ 50,000, a trend that lasted until January 2, when it fell to $ 47,000 and then lost resistance at $ 45,000.
External Influences on BTC
The correction of BTC responds to the drop in the hash rate due to the protests in Kazakhstan. Kazakhstan is a country that concentrates a considerable amount of processing power of the Bitcoin network.
Political conflicts led to the cutting off of Internet service, essential for miners to work. According to various reports, the government of the Asian country faces intense street protests. For this reason, they limited broadband access, in addition to mobile telephony. This limitation, of course, disconnected the mining nodes located in that country from the Bitcoin network.
And not only that. The release of documents from the December meeting of the United States Federal Reserve System (FED), which confirmed an anticipated rise in bond yields, coupled with the growth of omicron cases in the United States, also affected bitcoin. The news did hit Wall Street.
Hash Rate Also Down
As a sign that the blows of the node disconnection in Kazakhstan continue to have an impact, the hash rate of Bitcoin remains on the low side. As of January 6, the hash rate was at 170.8 EH / s and is still at those values.
This level got seen just a week ago when the indicator was on track to mark a new all-time high, making BTC open the year on the right foot.
Prediction Fulfilled
A few days ago, various media outlets highlighted the estimates of a bitcoin trader and analyst from the Netherlands named Michael van de Poppe. The analyst predicted corrections for BTC, detecting supports at $ 41,000 and $ 42,000 before reaching a high peak again.
As the representative said, falling to around $ 40,000 could be an opportunity for growth since liquidity will be affected, and room for a rebound will appear.
Likely, bitcoin will not enter a bear market or bear market. This situation gives opportunities for these estimates and suggests that the pioneer cryptocurrency will have a positive cycle in 2022.
By: Jenson Nuñez
