While Bitcoin Sleeps, Kaspa Prepares for the Ultimate Comeback

The whole crypto market got hit following Trump's news about the tariffs as Bitcoin dipped to $83k with all altcoins bleeding heavily.

The whole crypto market got hit following Trump’s news about the tariffs as Bitcoin dipped to $83k with all altcoins bleeding heavily. One of them is Kaspa, as the KAS price dipped to $0.063 at press time after trading above $0.080 in March.

However, we all know Kaspa’s community is among the strongest ones in crypto, and even during Kaspa’s darkest hours, you could see positive sentiment on X.

‘Kaspa Report’ posted another viral tweet to their followers.

“The narrative that fells empires:

Kaspa is the best money ever invented, yet they're pivoting to fiat despite it being hopelessly flawed.

Financial system heading towards stagflation. Will need to print more to avoid a crisis.

People prefer assets w/ less counterparty risk.

Kaspa benefits massively.

Come to the light. $KAS https://t.co/n7rL7m729bpic.twitter.com/Z648G8q81Z

— Kaspa Report (@report_kaspa) April 4, 2025″

Mining Activity Shows Signs of Bottom?

The Kaspa network hashrate has dropped to 840 PH/s. This is about half of what it was at its highest point. This drop suggests miners are giving up, which often happens near market bottoms.

But there’s some good news. The fees paid to miners started going up after hitting a 6-month low. On April 2nd, these fees reached one of the highest levels in 2025. This happened mainly because more people are creating KRC-20 tokens on the network.

The price chart is showing what traders call a “hidden bullish divergence.” This technical pattern, along with the rising fees, hints that Kaspa might be forming a bottom in its own price cycle.

Kaspa Whale Activity

The KAS/BTC ratio is extremely oversold. This means Kaspa is very cheap compared to Bitcoin right now. Many who used to strongly support KAS have already sold and moved to other cryptocurrencies.

With most weak holders gone, there aren’t many sellers left in the market. This lack of selling pressure could help the Kaspa price recover.

A large whale wallet (n4uk5a) is buying huge amounts of KAS. This single wallet is collecting nearly 70% of the new coins being generated. Meanwhile, the number of long-term holders isn’t changing significantly – they’re holding strong.

As more coins land in inactive wallets, a supply shortage could eventually occur. When demand remains the same but supply shrinks, prices usually rise.

The tweet also highlights concerns about the traditional financial system heading toward stagflation – a combination of stagnant growth and inflation. They predict that central banks will need to print more money to avoid a financial crisis.

During periods of financial uncertainty, people often seek out assets with less counterparty risk. The Kaspa Report claims that their cryptocurrency could benefit from this trend as a less risky investment.

A Balanced Perspective

Kaspa Report makes some good points that we can check, like the network data and the large trader buying. But we should be careful about their big claims about the economy and calling Kaspa “the best money ever invented.”

All crypto projects face huge challenges like getting people to use them, dealing with legal issues in different places, and upgrading their technology. Kaspa’s recovery depends on more than just its tech; it needs the market and investor interest to come back.

The big drop in hashrate could mean different things. It might show we’re nearing a bottom, but it could also indicate serious problems with the Kaspa network that are driving miners away.

And while it’s interesting that whales are buying Kaspa, having a few wallets control lots of coins can be risky for everyone else investing in the project long-term.

When reading analysis from big fans of a coin during a downturn, it’s best to balance their enthusiasm with your own research and an awareness of the risks involved.