How situation in Kazakhstan affects financial markets?

wfin.kz

The price of bitcoin fell to its lowest point since September 2021. The first cryptocurrency is now trading below US$40,000. According to market players, the recent events in Kazakhstan are one of the main reasons for this. Kazakhstan is the world’s second largest hub for cryptocurrency mining. According to Cambridge Center for Alternative Finance, that country was responsible for more than 18 percent of the global hash rate as of August 2021. Crypto farms are directly dependent on the Internet. These days, the market may have been affected by the Internet outages. Since November last year, Bitcoin has been valued at a record US$69,000. Another reason why the exchange rate began to decline was the tightening of U.S. monetary policy.

Meanwhile, shares of major Kazakhstan’s companies on foreign markets are recovering after falling the day before, analysts report. They explain that the decrease in turnover was influenced by the terrorist attacks in the country. The banking sector was affected greatly. So, during this period on the London Stock Exchange, Kaspi Bank shares fell immediately by 30 percent, Halyk Bank - by 19 percent. Prices for Kazatomprom shares also collapsed by 7 percent and traded at US$37 per unit. However, now the situation in the country is stabilizing, and the mood of investors is improving, experts say.

 

Translation by Assem Zhanmukhanova and Saule Mukhamejanova

 

 

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