By Marcus Sotiriou, market analyst at the publicly traded digital asset broker GlobalBlock (TSXV: BLOCK)
Bitcoin’s comeback has stalled at the $24,000 level, as it bounced back to $22,700 last night. Bitcoin has just broken from an upside of support on the lower time frame (LTF), so we could see a further downtrend in the near term. The next major support level is at $21,500.
According to a survey of leading operators, Russia’s crypto mining capacity has increased significantly. This research claims that the total capacity of crypto farms in Russia has expanded to 500 MW, showing how Russian crypto miners are preparing for growth. Executives have warned that growth could be limited by the government’s decision on whether or not to impose electricity tariffs and taxes. In addition, Russian miners are under threat from US sanctions – most notably Bitriver, which was targeted by the US. Nevertheless, Bitriver, the largest Russian miner, has taken advantage of the low prices for mining equipment by doubling the number of data centers. They recognize the advantages Russia has with its abundant energy resources and the long-term opportunities if/when crypto prices recover.
Separately, a recent Messari report highlighted BNB Chain’s opportunities this year. The report stated a focus on growth strategies, scaling solutions and the implementation of Ethereum Virtual Machine. Messari said: “The team plans to extend the network with L2-like solutions, such as ZK rollups and sidechains, and increase decentralization by open sourcing the validator set. Despite several challenges along the way, BNB Chain has successfully executed its roadmap for 2022… After a dramatic year with many challenges, BNB Chain looks set to remain competitive heading into 2023.” Indeed, daily active addresses on the BNB chain grew last year as average daily transactions held steady at around 3.4 million per day. During a persistently declining market, these stats are remarkable and signal strength.