China’s crackdown on bitcoin mining earlier this year was one of the most devastating price crashes in the history of the cryptocurrency.
From an all-time high above $64,000, BTC plunged below $30,000 in a matter of weeks, with some industry data predicting a “crypto winter” that would take years to recover.
The massive mining migration to the US, along with other positive news such as El Salvador’s bitcoin legislation, eventually led to a record-breaking recovery, and there is now speculation that China may reverse its decision, prompting experts to update their forecasts. . Should such a move happen, some claim it could provide a catalyst for another massive price rally.
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China’s National Development and Reform Commission (NDRC) announced last week that it is seeking public feedback on its decision to include bitcoin mining on its list of “phased out” industries, with some claiming it is the cryptocurrency sky’s response. As comes the cost of rockets and America’s newfound dominance in space.
The public comment period will last until November 21, at which time the country’s macroeconomic planning agency will evaluate the feedback and decide on its future course of action.
“China banning bitcoin mining will be big news for the crypto space,” said Nick Spanos, co-founder of Zap Protocol and one of the early bitcoin pioneers. Granthshala. “This will almost certainly act as a significant catalyst for the price of bitcoin and the cryptocurrency market as a whole.
“It has been speculated that China deliberately banned bitcoin to lower its price so that it can buy more BTC cheaply, so I would not be surprised to see Beijing reverse its stance on crypto entirely. “
While pro-crypto publications prefer Cointelegraph Describing the news as optimistic claiming that the NDRC could reverse Chinese authorities’ negative stance against bitcoin, more mainstream outlets in the region warned that it could actually make things worse. NS south china morning post described the action as a possible sign of “the final nail in the coffin for cryptocurrency mining activities in China”.
Crypto mining was initially placed in the elimination category by the agency in September, along with a ban by the People’s Bank of China to block cryptocurrency trading and financing. These services were already inaccessible to Chinese residents, and since July, data from the Cambridge Bitcoin Electricity Consumption Index (CBECI) shows that mining activity in China had already dropped to effectively zero.
This means that China cannot take any further steps to further strengthen its stance against bitcoin, with some analysts suggesting that any market-driven news from China may now only go in one direction. Ultimately, China’s decision to remove itself from the crypto space means it no longer has a significant impact on market movements.
“The China crypto story routinely recycles itself,” said Charlie Barton, a UK-based crypto expert on price comparison site Finder.com.
“China has banned crypto in some way or another every year since 2014, the size of which is enormous. China is one of the largest cryptocurrency markets, and, because of its political structure, when it comes to So the one most likely to make a dramatic decision is to regulate or ban cryptocurrencies.
“While it is tempting to believe the seemingly logical narrative that lifting the ban on crypto in the second largest market should be a good thing, ultimately there is rarely a single narrative that can be drawn to explain market movements. could.”
Credit: www.independent.co.uk /