Bitcoin drops to a four-month low as Kazakhstan’s internet goes down

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As the market stayed negative, Bitcoin (BTC) fell below $42,000 for the first time since September 2021.

CoinMarketCap’s leading cryptocurrency fell 2.92 percent in the previous 24 hours to $41,733 during intraday trade.

This is down 39.5 percent from the all-time high (ATH) price of $69,000 reached in November of last year.

Kazakhstan has seen a surge of demonstrations due to rising energy prices. As a result, the country’s government ordered a nationwide internet blackout to quell the disturbance, leading BTC miners to cease operations.

According to data analytic portal Coinwarz, the Bitcoin mining hashrate has dropped by 19.6% from the peak of 229 EH/s on January 1 to the current 184.25 EH/s.

Following the major flight of miners from China in May 2021, Kazakhstan has become the second-largest BTC mining center after the United States.

The US Federal Reserve’s decision to hike interest rates in March is also blamed for the Bitcoin price drop.

As a result, there’s a good chance the Fed will raise interest rates this year, despite growing dissatisfaction with rising inflation. Bitcoin plunged below $44,000 shortly after the announcement as a safe-haven asset with massive inflation, and the price continues to plummet.

According to CoinMarketCap, substantial liquidation in the crypto market has pushed the market worth below $2 trillion, to $1.96 trillion.

Meanwhile, market expert Michael van de Poppe believes that it has to retake the $46,000 level for Bitcoin to gain traction.

It remains to be seen how the top cryptocurrency will play out, with El Salvador President Nayib Bukele revealing his optimistic estimates that the price of Bitcoin may reach $100,000 this year.

In a recent research note, Goldman Sachs analyst Zach Pandl predicted that bitcoin would exceed gold in market share in 2022.

According to Goldman Sachs, Bitcoin presently holds a 20% share of the “store of value” market. The market capitalization of bitcoin is $700 billion, but gold is worth $2.6 trillion as an investment.

Furthermore, Goldman Sachs predicts that Bitcoin will “most likely” grow in importance over time. According to the American multinational investment bank and financial services firm, Bitcoin’s price would reach slightly over $100,000 if it gained a 50% market share.

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