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The analysts highlighted that $45K is a critical support level that needs to be obeyed for the upside target to fruition.
Two hours after midnight on January 6, 2022, the crypto market was bleeding profusely following a huge downfall of Bitcoin mining hashrate from Kazakhstan. Bitcoin mining hashrate dropped from approximately 220 EH/s recorded at the beginning of the year to the current 167.39EH/s according to Coinwarz. With Kazakhstan leading in the Bitcoin mining industry, second from the United States, Bitcoin continues to feel the pressure.
And thereby passing the effects to the whole crypto market since Bitcoin is a large player that controls approximately 37.5% of the total crypto market cap. According to market analytics provided by CoinGecko, Bitcoin price hovered around $43k at the time of reporting. The asset had dropped approximately 8% within 24 hours.
Protests in Kazakhstan, the largest economy in Central Asia, arose after fuel prices kept rising with increasing economic hardships. According to the local media, protestors forcefully gained access to the airport in Almaty, government buildings, and ultimately set fire. Consequently, the government has reportedly shut down the country’s internet connection, thereby affecting most miners.
The protests have been dubbed as one of the largest in the country, with fatalities. Notably, the media outlet CNN indicated that eight police officers have succumbed to the injuries while approximately 300 of them receive medical attention from various hospitals. However, no official report on the number of fatalities or injuries on the public side.
With Russia getting involved through military operations in Kazakhstan, it is expected to unravel geopolitical tensions with other military superpowers. The situation is likely to continue before a solution is provided since the government was dissolved following the protests.
Bitcoin Price Moves amid the News from Kazakhstan
As a result of the crypto liquidation, approximately $200 billion has been wiped out from the industry. Having dropped approximately 8.4% today, the total crypto market cap stood at approximately $2.166 trillion.
According to analysts from media outlet CoinDesk, Bitcoin buyers will need to deal with $47K to yield a short-term upside target toward $53,000 this week. Additionally, the analysts highlighted that $45K is a critical support level that needs to be obeyed for the upside target to fruition.
Arguably, Bitcoin price action has proved beyond reasonable doubt that it hardly follows the norm in the traditional stock market. The price could reverse anytime and head for a new all-time high without any warnings.
On the positive side, Goldman Sachs and El Salvador’s President Nayib Bukele have unanimously forecasted that Bitcoin will reach $100K this year. Moreover, $100K has long been overdue hereby a major psychological point.