Russia is one of the largest digital currency mining centers in the world

China's share in global production after being the largest currency mining center for the first cryptocurrency has fallen to zero as the leadership in this indicator now belongs to the United States. After that, Russia ranked third in the world in Bitcoin mining. According to the University of Cambridge, the country’s share in the total computing power of miners was 11% in August compared to 6.8% in April. A university study indicates that the United States is now the leader in terms of mining volume (35.4% share) and second place is occupied by Kazakhstan, whose share in global mining is 18%.

At the same time, the share of China, which until recently was the largest mining center, fell from 46% to zero in four months. The collapse was explained by strict restrictive measures in the industry. Cryptocurrency mining in the country was completely banned. As a result, cryptocurrency mining companies were forced to stop operating in order to move to other countries. In September, the Chinese authorities imposed a complete ban on cryptocurrency transactions and categorized them as illegal financial activities.

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Cryptocurrency mining in the world Results of the US Federal Reserve meeting The growth target will be 55-60 thousand dollars Bitcoin price reaches 30 thousand dollars Bitcoin growth shows recovery after a significant decline Government approves regulation of cryptocurrencies Russian city of the largest digital currency mining center in the world Experts explained the reasons for the active recovery of the cryptocurrency market in the past two weeks and told how this affected the largest currency mining center in the short term. The opinions of experts may not coincide with the position of the editors. “RBC-Crypto” does not provide investment advice, and the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses. As the price of Bitcoin on the Binance cryptocurrency exchange was updated to a monthly maximum of $45.4 thousand, then the cost of the cryptocurrency began to decline.

As of February 8, the asset was trading at $42.9 thousand, and over the past day its price has fallen by 2%. Despite the recent decline, since January 24, the price of Bitcoin has increased by more than 30%. Results of the US Federal Reserve meeting There are several reasons for the recovery of the cryptocurrency market. First, investors are anticipating a major price increase after the US Federal Reserve meeting in March, which means that stock returns are at risk of falling.

At the same time, the appetite for risk and high returns among market participants remains, especially against the backdrop of geopolitical tensions. Therefore, investors view cryptocurrencies as one of those assets that will allow them to maintain high returns, albeit involving high risks. Naturally, no one is talking about the complete flow of liquidity from stocks to cryptocurrencies. We are talking about transferring part of the liquidity.

Increased interest in cryptocurrencies and high investment activity In January, crypto startups raised a record $5 billion, indicating significant interest in cryptocurrencies and related solutions from institutional investors. It is difficult to determine the length of this trend. Bitcoin has surprised market participants time and time again. Overall, I see 2022 as a very turbulent year for both the stock market and cryptocurrencies.

It is believed that until mid-March, before the meeting of the US Federal Reserve with the key interest rate, there will definitely be no collapse, and it is definitely not worth waiting. If Bitcoin can fall to $30,000, it is still possible that this will happen in the second half of 2022. The growth target will be $55-60 thousand In the cryptocurrency market, as in any other market, one cannot say that something has reached the final stage, because the stages are constantly changing.

If we talk about the current situation, this is likely to be fixed in a wide range, from around $30-32k to $55-60k. In January, there was a recovery from 30 to 32 thousand dollars, and the potential growth target will now be 55 to 60 thousand dollars, but this does not mean that we will only go higher, of course there will be further corrections. There was no specific reason for the strong market recovery to be a major coin mining hub, but I will assume that it was all done by the volumes of the big players in a relatively weak market while the Chinese market is resting.

Read also: Explaining how cryptocurrencies work for beginners And then, in order to push the market upward, we will be “driven” by positive news, and retail investors will come under this positive news. The big players will exit them so, when we hear the most positive news, we will need to unlearn previous bearish positions. Bitcoin price reaches $30,000, says Ivan Sharov, General Director of the online store of mining equipment and computer components Hardvar.ru Despite the fact that during the correction, the price of Bitcoin did not reach $30,000, many investors began to actively buy it. This led to a shift. It is too early to say that the market has entered the growth phase, but what we see now is a good signal.

It is important to remember what happened during the last correction, when a sharp decline was followed by a slight rise, and then another decline. It is impossible to be completely certain that the market is recovering. Jobs must be opened gradually. Bitcoin's active recovery was caused by a decline in the dollar index, a recovery in US stock indices, as well as technical factors. The price confidently broke the descending trend line drawn at the November and December 2021 highs. Sellers closed short positions, while buyers opened long positions in anticipation of further price recovery.

Bitcoin growth shows recovery after a significant decline Bitcoin growth is considered to have achieved a recovery after a significant decline in the largest currency mining center as the currency clearly shows its correlation with the path of the US stock market After a long period of decline due to geopolitics and tighter monetary policy expectations from the Federal Reserve, indicators have entered into a recovery growth (the same dynamics are visible in Bitcoin). The current increase in the value of Bitcoin is, on the one hand, a reflection of some recovery in stock markets, on the other hand, a reflection of investors' attempts to buy the asset at lower levels. In fact, many people are now noticing that the shorts are still active and there are a lot of bets on the currency falling.

Therefore, most likely, we are witnessing a recovery in Bitcoin and in the future there will be a sideways movement in the range of $40-44 thousand (in the absence of negativity for the markets). As the Fed rate meeting approaches in March, sales may intensify again, in which case Bitcoin will start to fall again to $35-37 thousand so the asset will regain the expected decision from the US regulator on the price. Government approval to regulate cryptocurrencies Until February 18, the Ministry and the Bank of Russia, which represents the largest currency mining center, must prepare a draft law on the regulation of digital assets in the country As the Russian government approved a roadmap for the regulation of cryptocurrencies, which had previously been proposed by the Ministry of Finance, according to RBC reports, by February 18, the Ministry of Finance and the Bank of Russia must prepare a draft law on the regulation of digital assets.

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