China's share of global bitcoin mining plunges while Kazakhstan climbs to third place

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CNBC 15 July, 2021 - 01:26pm 18 views

Is Crypto in a bear market?

Cryptocurrencies are likely in a bear market, but it may be a short one. According to Coindesk's latest (June) quarterly review, we are more than 76 days into a bear market (defined as a drop of at least 20%, followed by at least 90 days in which the price does not return to its previous high or low). Moneyweb.co.zaBitcoin's bear market could be a short one

By Tom Wilson

China has long been the centre of global cryptocurrency mining, an energy-intensive process. Many bitcoin miners in China use fossil fuels including coal, stoking concerns over bitcoin’s environmental footprint.

The country’s share of the power of computers connected to the global bitcoin network, known as “hash rate,” fell to 46% in April this year from 75.5% in September 2019, according to the data from the Cambridge Centre for Alternative Finance.

In the same period, the United States’ share of hash rate jumped to 16.8% from just over 4%, making it the second-largest producer of bitcoin. Kazakhstan’s share also rose to around 8%, with Russia and Iran the other major producers.

The research gives a rare glimpse into global trends of bitcoin mining, amid increasing worries from the likes of Tesla over how the cryptocurrency is produced.

The decline in Chinese mining power came ahead of a crackdown by China’s state council, or cabinet, on bitcoin mining and trading in late May, citing underlying financial risks.

Anhui, in eastern China, became this week the latest province to announce a sweeping ban on cryptocurrency mining.

Major Chinese mining hubs including Sichuan, Inner Mongolia and Xinjiang have all issued detailed measures since to root out the business, paralysed the mining industry as miners dump machines or move to places including Texas or Kazakhstan.

Bitmain, China’s biggest maker of cryptocurrency mining machines, last month halted sales following Beijing’s mining ban, and said it was looking for power supplies overseas in places including the United States, Russia and Kazakhstan.

Reporting by Tom Wilson; Editing by Toby Chopra

Our Standards: The Thomson Reuters Trust Principles.

Read full article at CNBC

Crypto Cycle Calendar: Will Bitcoin Bottom Or Top This December 2021?

NewsBTC 15 July, 2021 - 01:50pm

Markets are cyclical, and move in a variety of patterns that can often give insight into what phase of a market cycle an asset like Bitcoin might be in.

But could time also play an important factor as to when market cycles come to the climax? Evidence suggests that the crypto market is especially sensitive to market timing, and in the past December has marked a distinct top or bottom. If this evidence is correct, and a pattern is potentially valid, will Bitcoin price top or bottom at the end of this year?

Bitcoin price is still stuck around the low $30,000 range – an inflection point and confusing stage of the current market cycle. The leading cryptocurrency spent the majority of the last 15 months bullish, but as of three months ago the market turned.

But rather than being a cycle top, the price chart more resembles a mid-point of the bull run, or perhaps wave four out of five – with the last leg up being one for the history books.

Adding more credence to the theory, is a chart shared by a crypto analyst who uses “sine lines” to call out distinct tops and bottoms in Bitcoin that take place every other December.

Two years later, in December 2017, Bitcoin price topped out once again, putting an end to that bull rally and starting another bear market. The bottom of that bear market was – you guessed it – in December. A temporary “bottom” was even set in December 2019 before a rejection resulted in Black Thursday last year.

In December 2020? Bitcoin price was blasting through former resistance at all-time high – a level it never looked back at, but is now less than $12,000 away.

The sine lines depicted in the chart above would suggest that Bitcoin price would potentially top out again, later this year. That would mean the current “peak” was merely a local top, and that the bull rally will soon resume.

According to Wikipedia, a sine line or sine wave “is a continuous wave” and is “named after the function sine.” It is in essence a mathematical curve that describes a “smooth periodic oscillation.” More importantly, is it found all throughout nature – notably in wind, sound, and light. But what about time?

Time and price is little more than various forms of mathematics, that pulses in waves. Before you dismiss any theories about December, remember, the sine wave around the end of this year and if the math adds up, Bitcoin price should be a lot higher.

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

© 2020 NewsBTC. All Rights Reserved.

© 2020 NewsBTC. All Rights Reserved.

Why The Next Bitcoin Bear Market Will Be The Worst Yet

NewsBTC 15 July, 2021 - 01:50pm

Bitcoin price continues to sink, and when it isn’t falling its barely able to move sideways, with “up only” the one direction the cryptocurrency won’t go.

Whether or not the crypto market is headed toward another bear market or not is debatable for now, but technical analysis suggests that when the peak of this cycle arrives, it could bring with it the worst bear market in the history of cryptocurrency.

A secular market is defined as “a market that is driven by forces that could be in place for many years, causing the price of a particular investment or asset class to rise or fall over a long period.”

“In a secular bull market, positive conditions such as low-interest rates and strong corporate earnings push stock prices higher,” an except in Investopedia reads.

Since the birth of cryptocurrency, Bitcoin has only known a bull market. The technology was born during The Great Recession right as quantitative easing began. The stock market has mainly experienced upside since, and Bitcoin price itself has risen from $0 to $65,000 at the local all-time high.

The tool also shows the strength of bulls (in green) diminishing while bears (in red) are getting stronger with each major wave up. But that’s still not the signal that suggests a much worse crash when the next cycle ends.

Cryptocurrencies are a speculative asset class, first born with Bitcoin. No one truly knows how’s to assign a value to the asset, and thus price action can be more volatile. Because speculative assets are driven more so by investor sentiment and emotion, it responds especially well to certain types of technical analysis, such as Elliott Wave Theory.

Elliott Wave Theory is both simple yet complex, and is based on the idea that markets move based on impulse driven waves. These waves and their potential paths and outcomes can be predicted with some degree of accuracy, so long as certain characteristics and conditions are present.

According to Thomas Bulkowski, the ending diagonal “is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast.”

When it finally breaks down, price action could correct all the way back down to where the pattern began to form, which would be more than $1,000 – but lower than the $3,000 bear market low. If Bitcoin truly is to make it to hundreds of thousands of dollars per coin, and the ending diagonal pattern is accurate, things could get a lot more volatile than anyone would ever expect.

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

© 2020 NewsBTC. All Rights Reserved.

© 2020 NewsBTC. All Rights Reserved.

China’s crypto industry is gone? Beijing’s crackdown keeps sending shockwaves

Cointelegraph 15 July, 2021 - 01:50pm

The Chinese government’s ongoing crusade against cryptocurrencies might have dramatic consequences for both domestic and global crypto traders.

From urging financial service providers to throttle cryptocurrency-related transactions to ordering a crypto trading software provider shut down, the initiatives coming out of Beijing and their repercussions are widely believed to have contributed considerably to the recent market downturn.

What motivates this new round of hostile actions, and how will they affect the cryptocurrency space of the nation that had once accounted for some two-thirds of the global digital asset supply? Furthermore, it seems that whatever happens in China is having a great effect on other parts of the world, which doesn’t seem to be negative.

It is not hard to notice how the intensifying clampdown on trading and mining of decentralized cryptocurrencies comes hand-in-hand with the ramping up of China’s central bank digital currency (CBDC) project. As part of the Digital Currency Electronic Payment system testing, stacks of the government-issued electronic money have already landed in the wallet apps of some 200,000 Chinese citizens selected via a lottery. It looks as if larger-scale trials and wide implementation can be expected within months.

When it comes to the distribution of political or economic power, Chinese leadership is not in the habit of promoting pluralism and competition. Up to a certain point, the nation’s sprawling cryptocurrency sector could eschew scrutiny, as it didn’t come into direct conflict with the government’s strategic plans, but this does not seem to be the case anymore.

Yu Xiong, professor of business analytics and director of the Center for Innovation and Commercialization at the University of Surrey, told Cointelegraph that China will not allow any currency to affect the renminbi, and for that reason, it can’t allow Bitcoin (BTC) to grow too big. Xiong added:

With major Chinese banks such as the Agricultural Bank of China falling in line and squishing consumer and business operations related to crypto, the concerted effort looks more like a chokehold than a lack of encouragement. On the receiving end of the government’s anti-Bitcoin push, crypto businesses and everyday users are dealing with the dire consequences of the stiffening policies.

The authorities’ all-around crusade against China’s cryptocurrency sector encompasses all major groups of stakeholders: As financial service providers are waking up to their bank accounts suspended, miners in several key provinces are receiving eviction notices. The exit of the company that operated the nation’s oldest Bitcoin exchange vividly illustrates the depth of the crisis.

Yifan He, CEO of Hong Kong-based blockchain firm Red Date Technology, opined to Cointelegraph that “the entire crypto industry in China is officially gone.” He thinks that while trading has always been in the area and mining was largely supported by some local governments, the current prohibitive turn in governmental policy will deal both types of activity a blow, from which they are unlikely to recover anytime soon:

In He’s opinion, a fraction of crypto trading can still persist, yet it will have to migrate underground. This will essentially put an end to China’s BTC mining dominance, as miners will either have to shut down completely or relocate and be regulated in other jurisdictions.

What’s being witnessed right now appears to be nothing short of the dismantling of the entire cryptocurrency industry in the country that, until recently, was a major mining and trading powerhouse.

Most everyday Chinese traders will likely find the new rules prohibitive and cease trading activity. Mining businesses will face a choice between vanishing and opening up shop in a different jurisdiction. Those who appreciated the ease of transacting in digital assets will soon have a centralized alternative in the government-backed CBDC.

Squashing the crypto sector on such a vast scale is inevitably echoing on the global scale as well. With much of the Chinese mining capacity gone, the hash power map of the world will have to undergo a dramatic rearrangement, with new centers of mining power emerging elsewhere to fill the void. With that, not just the firms but also the regular users will be affected in the long run, as some parts of the world will start witnessing an inflow of crypto-related business, to which regulators will start responding.

It is also possible that the loss of Chinese trading activity will become a factor weighing on the global crypto market for quite some time. Building and sustaining a new bull run comparable to that of the early 2021 — a process that requires a continuous inflow of new market participants — might become more challenging, given that China is no longer able to supply the user base growth it had contributed previously. The rest of the world is going to have to try really hard to compensate for China’s departure.

China’s bitcoin crackdown: what’s next for the original cryptocurrency?

South China Morning Post 15 July, 2021 - 01:50pm

Ohio turns Bitcoin green with nuclear energy deal

Yahoo Finance 15 July, 2021 - 01:50pm

The operation will be live from December 2021 and will produce so-called ‘green Bitcoins’.

Ohio has successfully bid to host the state-of-the-art facility in Coshocton in an effort to boost the number of tech jobs in the region.

Energy Harbor Corp is an independent power producer, fully integrated into the grid to provide sustainable and cost-effective energy.

The company hopes to position itself as a competitive provider in a low-carbon future, and says the possibility of carbon neutral and profitable crypto mining operations are at the heart of the project.

“We are focused on minimising the impact on the environment while driving a new clean energy future in our local Ohio economy,” said Energy Harbor president and chief executive officer, John Judge.

“This is another example of the value we provide to our customers and communities as we continue our growth strategy across all sales channels within our retail business.”

Standard Power is a leading blockchain mining specialist. Established in 2019, it handles power provision for numerous blockchain mining businesses, and has a pipeline power capacity of 1,000MW.

The company has spearheaded innovation in mining infrastructure and operational efficiencies, and became the first Bitcoin mining operator to utilise liquid 2-phase immersion cooling technology in its data centres.

Commenting on the project, Standard Power’s Chief Executive Officer – Maxim Serezhin, argued that the crypto mining industry has a responsibility to manifest an environmentally friendly future.

“Bitcoin blockchain mining centres are energy intensive, and we recognise our responsibility to build a more environmentally sustainable future,” he said.

“We selected Ohio because of its low electricity costs with availability of carbon-free sources of energy.

“By partnering with Energy Harbor, we have proactively structured our hosting capabilities to ensure that 100% of the power associated with this facility is carbon-free.”

Environmental impacts are at the core of the ongoing debate about the viability of mass mining operations, and forward-thinking projects and partnerships like the Coshocton facility plans are key to changing public perceptions and enabling widespread adoption.

If you want to find out more information about Bitcoin or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started.

As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.

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Compass Mining is just the latest firm to show how bitcoin's economic incentives could spur a greener grid.

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The agreement will add 800 petahash to Foundry USA mining pool's computing power, the companies said in a joint statement.

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A Delta pilot has sued the airline for $1 billion, accusing it of trade secrets theft over a communications app he developed a few years ago.

It’s yet another bearish start to the day for the crypto majors. A Bitcoin move back through to $33,000 would be needed to breakout from the current ranges and avoid a sell-off.

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For anyone watching with concern as prices surge for everything from food and gas to airplane tickets and clothes, the message from Federal Reserve Chair Jerome Powell over two days of congressional hearings this week was straightforward: Just give it more time and those price gains should slow, or even reverse. The Fed chair acknowledged that the U.S. is in the midst of an unparalleled economic reopening on the heels of a pandemic-induced recession, making it that much more difficult to anticipate how things like inflation and unemployment will play out. “This particular inflation is just unique in history,” Powell said Thursday before the Senate Banking, Housing and Urban Affairs Committee.

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China’s Bitcoin hash power fell before the crackdown: Cambridge data

Cointelegraph 15 July, 2021 - 04:59am

Cambridge research shows that China’s Bitcoin mining power fell by 40% before the crackdown, while the United States’ hash power quadrupled.

Reuters reported that China’s total computing power connected to the Bitcoin network, or hash rate, fell from 75.5% in September 2019 to 46% in April 2021, before the Asian country even officially announced the mining crackdown.

During the same 18-month period, the United States quadrupled its share of the global Bitcoin hash rate from 4% to 16.8% to become the second-largest producer of Bitcoin. Another country often named a potential destination for miners’ relocation, Kazakhstan, increased its share to 8% and became a primary Bitcoin producer.

After experiencing massive power outages in the mining hub of Xinjiang in April, Chinese authorities started investigating the energy consumption involved in Bitcoin mining. Officials announced strict supervision of mining activities due to carbon concerns, triggering the relocation of several industrial miners out of China.

Calling China’s mining ban a temporary inconvenience, iMining CEO Khurram Shroff said that the diversified location of mining facilities is great news for the rest of the world. “The Toronto Stock Exchange recently listed the world’s first Bitcoin ETF,” he exemplified, “[Canada] is already ahead of the curve in terms of mainstreaming cryptocurrencies.”

Some experts see China’s crackdown on Bitcoin mining as an easy decision. Bitmain’s EMEA partner recently told Cointelegraph that the country is required to reduce its carbon footprint to get funding from the International Monetary Fund or the World Bank, and Bitcoin mining was a convenient target to minimize energy consumption.

Bears Moving Thousands of BTC – Experts Claim the Worst Is Yet to Come By DailyCoin

Investing.com 15 July, 2021 - 12:00am

Bitcoin’s finite nature has positioned the coin to be an “inflation-proof store of value.” However, governmental intervention, coupled with environmental concerns and Bitcoin’s use in criminal funding activities, has disturbed investor interest in the cryptocurrency. Its volatile nature piques interest, as financial compensation is more rewarding for investors. Even though Bitcoin’s value is observed from an outdated financial perspective, FUD is decreasing investor excitement as BTC exchange outflows continue to dominate.

Chief market strategist at StockCharts, David Keller, has highlighted that Bitcoin is showing signs of trade weakness, although the S2F model predicts that Bitcoin will be trading in 6 digit figures by the end of 2021. While the focus is shifting from the king of crypto towards the regulatory landscape of CBDCs, investors continue to snap up BTC from exchanges.

A CoinShares report indicates that fund outflows have turned downward with Bitcoin product outflows amounting to $7 million. Additionally, Glassnode data suggests that approximately $66 million (2,000 BTC) are being transacted through exchanges daily. New regulatory actions, such as Barclays (LON:BARC) barring

“UK customers from transferring funds to Binance,” result in retail and other trader classes reconsidering their investments in certain jurisdictions.

Parabolic price increases are not sustainable. As Bitcoin and the cryptocurrency market continue to react violently to negative crypto observations, price instability will continue to rule the market. Volatility will diminish as institutional funds enter the market; however, more capital means inexperienced traders could affect Bitcoin’s price action. With market instability and the Elliott Wave Theory being imminent, Bitcoin, which has had an “only up” narrative, might face a “real” bear market.

China’s ban was the catalyst that disrupted the toxic trait of the crypto market. Similar to the Wild West, crypto consumers require protection from scams, which still roam free within the market. For reference, on-chain behavior signals, Bitcoin’s instability, and a reluctance to recover, might cause the price to break its support line, which was crossed when it reached $28,600.

Divisions, in theory, are highly frequent among traders. One trader’s gain is another’s sorrow. A J.P Morgan report indicates that a bull run could occur when BTC dominance passes 50%. However, as with any unregulated market, nothing is certain. Regardless, June has been a shaky month for cryptocurrencies, and despite positive outlooks on cryptocurrencies, Bitcoin has failed to amount enough power to overcome the overarching negative sentiment.

Negative sentiment, crypto scams, and increased regulatory pushback strike panic in investors. Institutional investors require a legal framework to preserve their assets when investing in crypto. Weak Bitcoin trading volumes are imperative for a possible crash. Additionally, as Bill Miller argues, the current regulatory measures are priced into the market.

That said, cryptocurrency appeal might diminish as investors “may be overvaluing their chances at outsized returns,” as stated by Miller. Furthermore, Chinese journalist, WuBlockchain emphasized that the Whale ratio on exchanges has increased, which might point to the likelihood that price action will continue to decrease.

In conclusion, a bear market is imminent as on-chain data and market summaries provide numerous indicators. While the cryptocurrency market is nothing like the stock market, the proposed outcomes shift as each passing day alters the market.

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