Mining No.2 Kazakhstan's Political Instability, Bitcoin Continues to Fall... "Could Drop Below $40,000"

Concerns Over Early US Tightening, Recent Sharp Drop in Trading Volume
"A Rebound May Occur at $38,000"

[Image source=Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] As political instability intensifies in Kazakhstan, known as the world's second-largest Bitcoin mining country, Bitcoin prices have been declining continuously. This is interpreted as a result of expanded anxiety due to the Kazakhstan issue amid a situation where trading volume was already decreasing following early tightening moves in the United States. Experts have raised the possibility of prices falling below the $40,000 level, increasing concerns about further declines.

According to CoinDesk, a global cryptocurrency specialist site, on the 6th (local time), Bitcoin was trading at $43,180.75, down 1.10% compared to 24 hours earlier. This marks the lowest level in about three months since early October last year when it recorded $43,798.70. Bitcoin has been on a downward trend for two consecutive days, following a drop of more than 5% the previous day.

It is analyzed that political instability in Kazakhstan, the world's second-largest Bitcoin mining country, is affecting the downward trend in Bitcoin prices. According to MarketWatch, until the first half of last year, more than 75% of total mining volume was conducted in China, but due to the Chinese government's large-scale crackdown on mining farms, many mining operations have moved to the United States and Kazakhstan. As of October last year, the United States accounted for 35% of mining volume, ranking first, while Kazakhstan accounted for 18%, ranking second.

Bitcoin's trading volume has recently decreased due to the impact of early tightening moves in the United States. According to CNBC, the average daily trading volume of Bitcoin reached $138.2 billion in June last year but sharply dropped to around $35 billion last month. To make matters worse, the political instability in Kazakhstan led to internet shutdowns within the country and the suspension of operations at major banks and stock exchanges, paralyzing the economy and further dampening investor sentiment.

Experts warn that the possibility of a decline below the $40,000 level should be kept in mind. Mike Novogratz, CEO of Galaxy Digital, a cryptocurrency investment firm, said in an interview with CNBC, "In the worst case, it could fall from $40,000 to $38,000 before a rebound occurs." He added, "Volatility is expected to increase over the next few weeks, but long-term demand remains strong, and institutional investors waiting to buy at lower prices are accumulating funds, so the upward trend will not be completely broken."

This content was produced with the assistance of AI translation services.