By Marcus Sotiriou, Market Analyst at a publicly listed digital asset broker GlobalBlock (TSXV:BLOCKS)
Bitcoin’s comeback stalled at $24,000, as it fell last night to $22,700. Bitcoin has just broken down from the uptrend support line on the lower time frame (LTF), so we could see further declines in the short term. The next key support level is $21,500.
Russia’s capacity for crypto mining has increased significantly, according to a survey of leading operators. This survey claims that the total capacity of crypto farming in Russia has increased to 500 MW, showing how Russian crypto miners are gearing up for growth. Executives have warned that growth could be limited by the government’s decision on whether to impose electricity tariffs and taxes. In addition, Russian miners are under threat of US sanctions – specifically Bitriver, which the US is targeting. Nonetheless, Bitriver, Russia’s largest miner, has taken advantage of depressed mining equipment prices as they doubled the number of their data centers. They recognize the advantage that Russia has with its abundant energy resources and long-term opportunities if/when crypto prices recover.
Separately, a recent Messari report highlighted the BNB Chain opportunity this year. The report mentions a focus on growth strategies, scaling solutions, and implementation of Ethereum Virtual Machines. Messari said, “The team plans to expand the network with L2-like solutions, such as ZK-rollup and sidechain, and to increase decentralization by open-sourcing validator sets. Despite some challenges along the way, BNB Chain has successfully executed its 2022 roadmap … After a dramatic year with many challenges, BNB Chain looks to remain competitive going into 2023.” Indeed, daily active addresses in the BNB chain grew last year as the average daily transactions remained steady at around 3.4 million per day. During an ongoing downward market trend, this statistic is noteworthy and signals strength.