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Top Bitcoin Miner Explains Implications Of China’s New Policies Against This Sector

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China is set to clarify its new policy for the Bitcoin mining sector in the coming weeks. For the first time, a high-ranking Chinese government official has spoken about a change in the status quo that rules this BTC mining.

Jiang Zhuoer, founder of BTC.TOP, one of the world’s largest crypto mining operations, shared some thoughts on the potential implications for the sector. Zhuoer believes the new measures are “not as serious” as the world thinks they are and added the following:

According to the minutes of “China Financial Stability Board”: We resolutely prevent and control financial risk…. we shall crack down #Bitcoin mining and crypto trading activities in order to prevent individual risks from being spread to the social level.

Therefore, Zhuoer stated that individual mining will continue existing for now and possibly in the future. The medium and industrial size operations could take the worst deal. As Bitcoinist reported earlier, China has environmental requirements to be met by 2060 and BTC mining seems to be perceived as a potential obstacle to complete that agenda.

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The Worst-Case Scenario For The Bitcoin Mining Industry In China

The market and the crypto industry have their natural ways of reorganizing themselves. In this case, Zhuoer predicts that China and large operations could take the worst part of the deal with little to no consequences for the Bitcoin network.

The miner referred to 2017 when China undertook a crackdown against crypto exchanges. At that time, these platforms migrated out of the country. Large BTC mining operations could have the same fate, either they will reduce and become smaller to fit the regulations, sell their equipment for a profit, or move to a different location outside the country. Zhuoer stated:

(…) in addition, most of the cutting-edge machines will be shipped overseas, the machines’ price will remain in a reasonable price range. (…) But in the long run, if China takes regulatory actions against crypto mining, then major Chinese manufactures #bitmain will probably sell most of their machines abroad.

American and European mining operations will take the best part of the deal, as Zhuoer predicts an increase in their relevance. Thus, China’s influence on BTC mining and the global hashrate will be minimal. Zhuoer said:

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In the end, Chinese hashpower will flow abroad just like the Exchanges did in 2017, China will play a less significant role in the global hashpower distribution.

Almost everyone familiar with China’s decision agrees that Bitcoin will benefit from a redistribution of its hashrate. Primitive Crypto founder Dovey Wan said that the Asian giant is trying to prevent two things: capital outflows and speculative behavior to maintain “social stability”. Wan added:

Bitcoin mining ban is a collateral damage in the suite of actions to “maintain financial and economic stability” (…). But unironically good for a global hashrate redistribution

At the time of writing, some miners are already taking steps to migrate out of China. Therefore, it’s possible that BTC’s hashrate could decline, as miners set up their overseas operations.

At the time of writing, BTC trades at $37,678 with an 11.5% profit in the daily chart. The cryptocurrency broke out of the $38,000 range but faced an increase in selling pressure. If Bitcoin wants to reclaim the important $40,000 price mark, it must hold current levels and make another push for a higher low.

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BTC pushing against resistance in the daily chart. Source: BTCUSD Tradingview

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Bitcoin extends correction as Ethereum sees ‘picture perfect’ rejection at all-time highs

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Bitcoin (BTC) stayed closer to $60,000 on Oct. 22 after the largest altcoin Ether (ETH) failed to cement new all-time highs.

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BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

ETH all-time high? Blink and you’ll miss it

Data from Cointelegraph Markets Pro and TradingView ETH/USD just match its record $4,380 on Bitstamp before seeing a harsh rejection.

Traders watched in anticipation as Ethereum appeared to follow Bitcoin to historic new levels, only to face immediate resistance and fall sharply back into a lower range.

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Trader and analyst Rekt Capital called the event a “picture perfect rejection.”

At the time of writing, ETH/USD circled $4,150, preserving $4,000 as support with the exception of a flash dip which immediately followed the all-time high rematch.

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ETH/USD 1-day candle chart (Bitstamp). Source: TradingView

Against Bitcoin, Ethereum fared better, with the ETH/BTC pair having bounced near lows last seen in late July. 

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Bitcoin could see “additional topside euphoria”

Having similarly failed to hold significantly higher levels, Bitcoin itself took an extended break as overheated markets cooled their excitement.

Funding rates were returning to normal on Friday, having reached a state reminiscient of the blow-off top from April. 

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Bitcoin funding rates chart. Source: Bybt

As with open interest, however, these were not as frenzied as the Q2 rush, which produced the $64,900 all-time high in place until this week.

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“This means there is possibly still room for additional topside euphoria but we are at levels that are starting to stretch the market,” crypto trading firm QCP Capital commented in its latest market update.

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Bitcoin Forecast and Analysis BTC/USD October 22, 2021

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BTC/USD are trading at 64619 and continue to move as part of the correction and the bullish channel. Bitcoin cryptocurrency capitalization at the time of the publication of the forecast is $1,194,342,792,891. Moving averages indicate a short-term bullish trend for Bitcoin. Prices went up from the area between the signal lines up, which indicates pressure from buyers of ”Digital Gold” and a potential continuation of the rise in the value of the asset already from the current levels. As part of the cryptocurrency rate forecast for tomorrow, October 22, 2021, we should expect an attempt to develop a decrease in the value of a digital asset and a test of the support level near the 57505 area. Where again should we expect a rebound and an attempt to raise the Bitcoin rate with a target above the 74055 area.

Bitcoin Forecast and Analysis BTC/USD October 22, 2021

An additional signal in favor of the growth of BTC/USD quotes will be a test of the rising trend line on the relative strength index (RSI). The second signal in favor of this option will be a rebound from the lower border of the bullish channel. Cancellation of the growth rate and value of Bitcoin will be a fall in the value of the asset and a breakdown of the area of ​​52205. This will indicate a breakdown of the support area and a continuation of the fall in the Bitcoin rate with a potential target at 42055. Confirmation of the rise in the price of the asset will be a breakdown of the resistance area with the price fixing above the level of 69205.

Bitcoin Forecast and Analysis BTC/USD October 22, 2021

Bitcoin Forecast and Analysis BTC/USD October 22, 2021 suggests an attempt to test the support level near the 57505 area. And further, the cryptocurrency will continue to grow with a potential target at 74055. An additional signal in favor of the Bitcoin rate rise will be a test of the support line on the relative strength index (RSI). Cancellation of the cryptocurrency growth option will be a fall and a breakdown of the 52205 area. This will indicate a continued fall with a potential target below the 42055 area.

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Bitcoin Price Flash Crashes for Second Time in a Month in the US

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The price of bitcoin (BTC) on Binance.US, the US-based exchange affiliated with Binance, briefly crashed to as low as USD 8,200 today – a drop of 87% – before recovering again. The crash marks the second time in a month when bitcoin prices in the US have briefly disconnected from the rest of the world. 

Today’s flash crash, which was one of the most significant on a major exchange in bitcoin’s history, all happened within less than 1 minute, the BTC/USD price chart from Binance.US showed. 

Although the flash crash was all over within a minute, the trading volume showed that a significant number of coins did change hands during the crash, indicating that some traders may have been able to fill orders for bitcoin at extremely low prices.

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BTC/USD on Binance.US. Source: TradingView

Flash crashes can happen when large market sell orders are sent to exchanges without sufficient liquidity on its order books, for instance, because a large trader accidentally placed the order as a market order instead of a limit order.

Today’s flash crash on Binance’s US exchange is the second such incident in a month in the US. On September 20, a data feed for crypto prices called Pyth that is used by some of the largest financial institutions on Wall Street showed a 90% crash in the price of bitcoin.

The feed briefly showed bitcoin at a price of USD 5,402. However, a similar price crash was nowhere else to be seen. Two days later, in a report about the incident, Pyth concluded that the abnormally low price was indeed a technical glitch, “caused by the combination of (1) two different Pyth publishers publishing a near-zero price for BTC/USD and (2) the aggregation logic overweighting these publishers’ contributions.”

Discussing today’s incident on Twitter, many traders complained about being forced by US regulations to use exchanges such as Binance.US, which has thin order books and low liquidity compared to the international version of the exchange.

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No statement has yet been made from Binance or Binance US regarding today’s flash crash.

At 16:11 UTC, BTC trades at USD 63,180 and is down by almost 6% in a day, trimming its weekly gains to 10%.

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