Kazakhstan: Nationwide blackout sparks global Bitcoin crash
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After a year of gains and record highs, cryptocurrencies are enduring a turbulent time with unpredictable price changes, with the market down by 4.71 percent on the last 24 hours on Monday, according to Coinbase. The market could be in for a difficult year in 2022 if things continue the way they are currently going.
What is dogecoin’s current price?
Dogecoin is currently down 4.4 percent over the past 24 hours, with a current price of £0.11.
Bitcoin is also trading down by 4.3 percent, ethereum by five percent and solana by more than seven percent.
Over the past few weeks, bitcoin’s price has been fluctuating between £30,000 and £38,000.
Why is crypto crashing?
The crash began after US Federal Reserve officials warned inflation could be higher than previously expected.
If this pattern continues, dogecoin and other cryptos could find 2022 particularly turbulent.
All major central banks look increasingly likely to raise rates faster than expected, in a bid to tame inflation.
What’s more, political unrest in Kazakhstan is causing difficulty for the market.
Kazakhstan is the second largest home to crypto mining, according to Cambridge University.
The country is currently in turmoil following a government decision to allow market rates to govern fuel prices, which saw the price of fuel double.
The changes have increased mass protests over the economy and human rights in the country in recent days.
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An internet blackout took place on Wednesday last week, resulting in stalled crypto mining operations.
In November, the Financial Times reported that increased crypto mining operations in Kazakhstan were seeing power outages across the country, as energy-intensive mining rigs caused blackouts in a number of regions.
The electric grid has also previously threatened to ration power supply to some crypto miners.
Motley Fool crypto expert Chris MacDonald said: “Investors appear to be continuing to move away from risky, growth-related investments toward more defensive asset classes today.
“In the stock market, the Nasdaq is once again leading losses among major indexes, as investors look toward safe havens.
“Guidance given by the Federal Reserve via meeting minutes published last week continues to haunt growth investors, who are now pricing in much more meaningful rate increases, sooner than expected.
“In the crypto world, levels of ‘extreme fear’ are being noted by various gauges of investor sentiment.
“For meme tokens such as Dogecoin relying on positive sentiment and investor interest, this current environment is one that’s not friendly to the sort of parabolic growth trends many investors initially hoped for coming into 2022.”
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