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The fall of bitcoin from January 5 to January 7 is mistakenly associated with the termination of the operation of mining farms in Kazakhstan due to the disconnection of the Internet. This opinion is shared by analysts at Arcane Research.
“Because of the protests in this country, the hashrate of bitcoin fell by 12%, but it would be wrong to see only this as the reason for the price drop to the lows since September last year. There was other bearish news in those days. “, – the experts noted.
Data: Arcane Research.
Analysts recalled that on the evening of January 5, the Fed presented the minutes for the last meeting with clearer signals of monetary tightening.
The committee did not rule out a reduction in the volume of assets on the balance sheet almost immediately after the first increase in the key rate. At the same time, the pace will be faster than in October 2017, when the regulator also curtailed the quantitative easing program.
Bitcoin plunged 4.5% in the first hour after the protocol was published, while the S&P 500 index sank 1%. Noting such dynamics, Arcane Research explained that it was the news from the Fed, and not the shutdown in Kazakhstan, that led to a sharp decline in the cryptocurrency market.
Experts stressed that over the past months, the correlation of bitcoin with the stock market has increased, which was most clearly manifested at the moments of signals of tightening monetary policy.
Analysts called the market’s reaction to the shutdown of the Internet in Kazakhstan “a mere coincidence.”
Bitcoin hashrate dropped due to internet shutdown in Kazakhstan
Recall that economist Alex Kruger allowed Bitcoin to fall below $ 40,000 amid high inflation.
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