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Bitcoin and cryptocurrency prices have struggled in recent weeks as China’s brutal crypto crackdown worsens (you can get ahead of the market here).
The price of bitcoin collapsed in May, losing 50% of its value, and has remained under pressure ever since. Meanwhile, ethereum, the second largest cryptocurrency after bitcoin, has fallen by more than half as the price of ethereum struggles to maintain above $ 2,000 per ether token.
Now, after reports of former Bitcoin and Ethereum miners in China ditching GPUs, suggesting that at least some of China’s decommissioned mining capacity will not return, analysts have warned that crypto prices are on the rise. “in danger”.
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Bitcoin, etheruem, and other cryptocurrencies have struggled since reports of China’s crypto crackdown … [+]
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Chinese bitcoin and ethereum miners dropping processors “comes as no surprise given that China has seriously cracked down on bitcoin mining in the country, but development can nonetheless be interpreted as fundamentally bearish”, Adam James , Hong Kong-based editor-in-chief based on bitcoin and the OKEx crypto exchange, wrote in his latest analysis, adding that “market sentiment has declined significantly” over the past few days.
Meanwhile, reports emerged on social media that China has started blocking access to major cryptocurrency exchanges. This week, users reported that Huobi and Binance briefly needed a location-masking VPN to access.
Binance, the world’s largest bitcoin and crypto exchange by volume, has battled a global regulatory crackdown in recent weeks, with the United States and countries across Europe stepping up their scrutiny of the exchange.
China’s crackdown on bitcoin and crypto mining last month has forced those using powerful computers to secure the bitcoin network and validate transactions outside the country. The expulsion of bitcoin and crypto miners from China sent bitcoin’s hash rate, a measure of computing power directed at the bitcoin network, to a 13-month low in the past two weeks.
The ethereum network has also been hit by the ban on crypto mining in China, seeing its network hash rate drop by around 20% since May as miners shut down.
After falling below $ 30,000 in recent weeks, the price of bitcoin has peaked just above the psychological level, but its inability to significantly recover the ground lost since its May crash has worried many market watchers. cryptography.
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After a huge rally in the first few months of this year, the price of bitcoin has fallen sharply, … [+]
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“There is a summer lull in the crypto market that may just be the calm before the storm,” wrote Alex Kuptsikevich, senior financial analyst at FxPro, in emailed comments, warning that if bitcoin drops below $ 30,000, it is “likely to trigger a new wave of liquidation.”
“If the market is affected by a small number of open positions, then any small storm could turn into a large-scale sell-off, disrupting an avalanche of stop orders. But the most alarming thing for crypto enthusiasts is that such a result will underscore the protracted nature of the correction, increasing speculation around a new “crypto winter” like in 2018. “
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