Is The Bitcoin Hashrate Recovering From Kazakhstan’s Crisis? Fear Abides

As the government of Kazakhstan claims the country’s power services are stabilizing, thus the Bitcoin hashrate could be on its way to recovery. However, is the situation stable enough for Bitcoin mining yet? Will it ever be?

A Recap

Just a few days after the Bitcoin hashrate reached an All-Time High, thus recovering from the China ban on crypto mining, another authoritarian crisis hit the bitcoin mining industry in Kazakhstan, taking the hash to drop 15% in 10 days.

The country has been the second-largest bitcoin mining spot (after the U.S.) with 18% of the global BTC hashrate ever since China’s miners were forced to find new locations with cheap energy costs.

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Parallel to the crypto market down movement, on Friday 7th the price of BTC dropped to $41,000 while the coin’s mining in Kazakhstan went dark as the government forced a power and internet shutdown to gain control over raising protests, which had turned violent.

The protestors were reportedly voicing their anger toward new high fuel costs.

The news has been reported everywhere without complete certainty of what’s happening. Borders, the internet, and other means of communication were blocked, so the information doesn’t reach the world so easily.

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The latest reports had shown that the uprising has been tamed as Russia’s President Putin stood proudly as the military ally who sent paratroopers last week. A demonstration of power through force.

President Kassym-Jomart Tokayev called it “an attempted coup d’etat”, Reuters reported. He alleged that “It became clear that the main goal was to undermine the constitutional order and to seize power.”

Both countries had referred to the uprising as a foreign-backed insurrection, failing to blame someone –or somewhere– in specific.

“Old man out!” was the protestors’ favorite chant referring to the former Nazarbayev who still holds power.

“We are ordinary people. We are not terrorists!!” read a banner from 40 activists.

Related Reading | Could Kazakhstan Turmoil Cause Another Bitcoin Hash Crash?

Is The Crisis Over?

The government gave “shoot to kill” orders.

In short: no, the real crisis cannot be over. The violence, however, might have stopped.

Reportedly, 164 people (3 children) have been killed, over 2,000 injured, 7,939 were detained.

“The violence has been by far the worst seen in the country since independence from the Soviet Union in 1991.” The Telegraph reported

“One man who had ventured out to find food was shot dead, according to credible reports, and a Kazakh media group said that one of its drivers had been killed.”

It wasn’t simply an internet shutdown: they was no way to buy food, banks were closed in central Almaty, going out was too dangerous, even ambulances were too afraid to work past the 7 pm curfew.

It also wasn’t simply about a rise in fuel prices, as the UK-based newspaper reported, the citizen’s despair also comes from “frustration at economic stagnation, revulsion at elite corruption and anger at the dilapidated state of social services and healthcare despite Kazakhstan’s oil and mineral wealth”.

The National Security Committee of Kazakhstan claimed that the situation has “stabilized and is under control” and declared the date as a day of mourning.

However, others report that the protests enter week 2.

Bitcoin Mining In Kazakhstan

On the miners’ end, the government intends to tighten rules and introduce extra taxes starting this year.

Currently, reports are showing mixed signals about the impact of these events on the industry.

An analysis by CoinDesk using data from mining pool alleged that the lost Bitcoin hashrate of top mining pools had been nearly recovered, narrowing the loss to 2.2%.

Data from shared by CoinDesk

The portal reported Alan Dordzhiev, head of the Kazakh National Association of Blockchain and Data Center Industry, had told them that the situation had been “almost resolved” and despite the blackouts, crypto mining regions were “totally fine”.

However, internet watchdog NetBlocks reported that a new blackout happened:

And NetBlocks’ director of research of internet monitor Isik Mater told Forkast that restorations made in the country “are limited, unpredictable and don’t satisfy the requirement for a stable connectivity needed for cryptocurrency mining or blockchain applications,”

The current hashrate measured by reads 176 EH/s, still away from the 208 million EH/s ATH on January 1st –but not endangering.

Kazakhstan miners had been facing power restrictions. They might have already started to set their sight overseas, and beyond the service’s stability, the ongoing situation is unlikely to make them feel safe and welcomed.

Related Reading | Bitcoin Hashrate Approaches New ATH, What Does It Mean For The Price?

Bitcoin has shed over 19% in value in the past two weeks, the current price is at $41613 in the daily chart | Source: BTCUSD on TradingView


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Bahrain’s Central Bank Declares Its JPM Coin Payment Test a Success

The Central Bank of Bahrain (CBB) has successfully completed a test of JPMorgan’s JPM Coin. The latter is a digital currency designated to make payments using blockchain technology.

First Tests for JPM Coin in The Region

Bahrain’s central bank revealed it is committed to improving the customer experience for secure and efficient settlement services. Seeking to achieve its mission, the financial institution completed a trial of JPMorgan Chase’s JPM Coin. This is the first test of its kind for the US bank’s blockchain product in that part of the world.

The experiment involved two other entities: Manama-based Bank ABC and Aluminium Bahrain – the first aluminum smelter in the Middle East, more popular as Alba. The test enabled the former to initiate real-time payments to the latter utilizing the JPM Coin.

Bahrain’s central bank supervised the project as the results were labeled “promising.” Mr. Rasheed Al-Maraj – Governor of the CBB – highlighted the experiment’s success, stating that the Kingdom will continue employing pioneering technologies to enhance the local financial network.

“Working with Alba, Bank ABC, and Onyx from JPMorgan, we aspire to address and eliminate the inefficiencies that exist today in the area of ​​traditional cross-border payment,” he added.

In turn, Mr. Sael Al Waary – Group Executive Vice President of Bank ABC – said that participating in the test marks the achievement of an “important milestone” for his firm. He predicted that cryptocurrencies will play a “critical role” in transforming digital economies in the future.


Ali Mousa – CEO of JPMorgan Bahrein – also commented on the matter:

“JPMorgan’s ONYX subsidiary is committed to spearheading the construction of the next generation of clearing and settlement infrastructure… The completed testing with Alba and Bank ABC will help inform further development of the JMP digital currency systems for future use by our banking partners.”

JPMorgan’s Crypto Offerings

Even though its CEO Jamie Dimon is one of the biggest critics of the digital asset industry, the aforementioned initiative is not the only crypto-related move the company has ever done.

Last summer, the US bank allowed its wealth management clients to get involved with six cryptocurrency funds. Four of the products are from Grayscale Investments and include Grayscale Bitcoin Trust (GBTC), Grayscale Bitcoin Cash Trust (BCHG), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG), while Osprey Bitcoin Trust (OBTC) is part of the Osprey Funds.

The last one is a new bitcoin fund created by the digital asset company NYDIG, which was designed only for private bank customers.


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Here Are the Bottom Prices for Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and Cardano (ADA), According to Crypto Analyst

A closely followed crypto analyst has laid out how he thinks Bitcoin (BTC), Ethereum (ETH) and two other altcoins will bottom out and reverse into bull trends.

The pseudonymous analyst known as Capo gives his 232,000 Twitter followers the potential bottoms on BTC and ETH, plus smart contract platforms Solana (SOL) and Cardano (ADA).

“Potential bottoms:

BTC $40,000

ETH $3,000

ADA $1.02

SOL $125.”

Looking at Bitcoin, the analyst says that he’s expecting a scenario where BTC dives down slightly below $40,000 before bouncing sharply and reclaiming the $50,000 level again.

“Expecting something like this for the bottom formation

Blue line is $40,000″

Source: Capo/Twitter

According to Capo, the current price range for Bitcoin is presenting what will ultimately be one of the most prime trade entries of 2022.

“I’m buying between $40,000-$45,000. This is one of the best buying opportunities for this year, by far.

Consolidation below $40,000 would prove me wrong.”

As for Cardano, Capo thinks ADA will continue dipping below current prices and end up around the $1.00 range before reversing its trend.

“ADA breaking support and going straight to the buy zone.”

Source: Capo/Twitter

While the crypto trader’s outlook on Cardano may seem bearish, his longer term forecast is more bullish than most. Last month, Capo offered a Cardano prediction that puts ADA 600% higher than current prices. He says that if ADA can hold the $1.00 level, then a rally to $10 this market cycle is fathomable.


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Bitcoin Discount? Peter Brandt On Why You Shouldn’t Buy The Dip

Bitcoin has been dropping consistently for the past week and the crypto market has lost over $500 billion following this dip. Like with any crash, there have been the expected calls of ‘buy the dip’ from investors who believe that the dips are only temporary and that the digital asset will soon recover all of its lost value.

While this advice is sometimes sound, there is no doubt that there are some drawbacks with it, which could range from adding to a losing position that ends up losing more, to sinking more money in projects that may already be doomed to fail. Veteran trader Peter Brandt has addressed these calls of ‘buy the dip’, explaining why investors should not follow it.

Related Reading | Melania Trump Congratulates Bitcoin On 13th Anniversary Of Bitcoin Genesis Block

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You Could Lose More Money

Famed trader Peter Brandt responded to a tweet from CEO of Vailshire Capital, Jeff Ross, saying that the price dips that are being experienced by bitcoin presented an opportunity for long-term traders to increase their holdings. Brandt’s tweet was vehemently against this school of thought, proposing instead “a sacred trading rule” for investors during times like these.

The veteran trader compared the current movement of bitcoin to the Silver $SI_F of 1980, which had grown to its $50 top after a massive run. It had subsequently sunk to $3.65, leading people to purchase it in the hopes of catching the dip, but the asset ended staying low for more than two decades.

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Basically, the investor urged investors to not rush to purchase bitcoin because it is low and they think it will not go lower.

Bitcoin price chart from

BTC continues downward trend | Source: BTCUSD on

Comparing Gold And Bitcoin

In a subsequent tweet, Brandt did a similar comparison to the price of bitcoin. This time around, he focused his attention on gold, calling out the fact that just like silver in the 1980s, gold experienced a similar trend.

He explained that gold had first hit its all-time high of $873 in 1980, followed by a drop in price to $255. The asset which had been the inflation hedge of choice for many decades had remained in this territory for almost three decades following this and would only beat this previous all-time high 27 years later.

Related Reading | TA: Bitcoin Key Indicators Suggest A Strengthening Case For More Downsides

Brandt admonished the author of the previous tweet by asking, “Is this your definition of a ‘long-term’ investor?”

Naturally, Brandt’s comment regarding bitcoin had drawn the ire of bitcoin maximalists who flocked to explain to the older trader why the digital asset would not follow the footsteps of gold and silver.

One user tweeted that “Difference is btc is technology, not a rock”, while another pointed out that bitcoin had more utility, saying, “Gold has been a disastrous investment. Not much utility in it. Hard to carry your gold with you in the event of political system or economic collapse. Hence #Bitcoin.”

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Bitcoin price bounces to $41.5K, but derivatives data shows traders lack confidence

Bitcoin (BTC) briefly reached its lowest level in five months this Monday at $39,650, marking a 42.6% drawdown from the all-time high present on Nov 22, 2022. Some argue that a “crypto winter” has already begun citing the $2.1 billion leverage-long aggregate crypto futures contracts that were liquidated over the past seven days.

Bitcoin/USD price at FTX. Source: TradingView

The descending channel guiding Bitcoin’s negative performance for the past 63 days indicates that traders should expect sub-$40,000 prices by February.

Confidence from investors continued to decline after the United States Federal Reserve’s December FOMC session on Jan. 5. The monetary policy authority showed commitment to decrease its balance sheet and increase interest rates in 2022.

On Jan. 5, Kazakhstan’s political turmoil added further pressure to the markets. The country’s internet was shut down amid protests and this caused Bitcoin’s network hashrate to tumble 13.4%.

Futures traders are still neutral

To analyze how bullish or bearish professional traders are, one should monitor the futures premium , which is also known as the “basis rate.”

The indicator measures the difference between longer-term futures contracts and current market levels. A 5% to 15% annualized premium is expected in healthy markets, which is a situation known as contango.

This price gap is caused by sellers demanding more money to withhold settlement longer and a red alert emerges whenever this indicator fades or turns negative, which is a scenario known as “backwardation.”

Bitcoin 3-month future contracts basis rate. Source:

Notice how the futures market premium did not trade below 7% over the past couple of months. This is an excellent indicator considering the absence of Bitcoin price strength during this period.

Options traders are not as bullish

To exclude externalities specific to the futures instrument, one should also analyze the options markets.

The 25% delta skew compares similar call (buy) and put (sell) options. This metric will turn positive when fear is prevalent because the protective put options premium is higher than similar risk call options.

The opposite holds when greed is the prevalent mood which causes the 25% delta skew indicator to shift to the negative area.

Deribit Bitcoin options 25% delta skew. Source:

Readings between negative 8% and positive 8% are usually deemed neutral. The last time the 25% delta skew indicator entered the “fear” range at 10% was on Dec 6, 2022.

Related: Bitcoin drops below $40K for first time in 3 months as fear set to ‘accelerate’

Thus, options markets’ traders are at the very edge of the neutral-to-bearish sentiment because the indicator currently stands at 8%. Moreover, buying protective put options is becoming more expensive, so market markers and arbitrage desks are not confident that $39,650 was the bottom.

Overall, the sentiment is pessimistic and the $2.1 billion in aggregate futures contracts liquidations signal that derivatives traders’ longs (buyers) are quickly losing confidence. Only time will tell where the exact bottom is, but presently, there is not an indication of strong support coming from pro traders.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.