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
China’s Anhui province has announced that Bitcoin mining in the area will be shutdown, as the country’s crackdowns on crypto miners continue.
As per a Bloomberg report, China’s series of crackdowns on Bitcoin mining continue as another province, Anhui, joins in.
Located in Eastern China, Anhui is a province just three hours away from Shanghai by high-speed train.
The local government plans to root out all Bitcoin miners and related projects in the province within the next 3 years.
Hf365.com, a local news portal, first broke the news about the government’s movement. The media group behind the website has affliations with the government of Anhui’s capital, Hefei.
The province has been facing acute power shortage for a while now, as per the news portal. Anhui’s current power supply is around 48.4 million kilowatts, while the government projects the demand to rise to around $73 million kilowatts by the year 2024.
Since Bitcoin mining farms are very power hungry, the move makes sense to save some energy.
According to reports, going forward, the province also plans to curb energy requirements of any new projects that require high power consumption. Data centers will also be built in an orderly manner.
There have also been talks about electricity pricing reforms in the province to ensure judicious use of energy.
Anhui’s mining shutdown is part of a series of crypto-related crackdowns that China has been doing for a while now.
Whenever China announces more crackdowns, Bitcoin’s price generally seems to take a hit. The 2021 bull run ended when China reiterated its cryptocurrency ban, and BTC’s price fell almost 50% in response.
Other parts of the country like Inner Mongolia and the Yunan Province announced their intention to crackdown on Bitcoin mining earlier this year.
Just last month, the Sichuan province also announced crackdowns in the city of Ya’an. The area is known for its hydropower abundance, and the cheap energy has made it a miner hub.
At the time of writing, Bitcoin’s price floats around $32.8k, down almost 5% in the last 7 days. While the coin has fallen 19% in the past 30 days.
Here is a chart showing the trend in the crypto’s value over the past 6 months:
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Bitcoin, Ethereum And Cardano Among Major Cryptocurrencies To Fall As China Expands Mining Crackdown
14 July, 2021 - 10:15pm
Bitcoin fell roughly 4% Wednesday morning to just over $31,500 a token, its lowest point in nearly three weeks, after the province announced plans to phase out cryptocurrency mining within three years.
The ban comes amid a wider crackdown on the crypto industry in China and follows similar initiatives to outlaw the power-hungry process in the mining hub provinces of Inner Mongolia, Xinjiang, Yunnan and Sichuan.
Other major cryptocurrencies, which often mirror bitcoin’s movements, also fell Wednesday morning, with ether, cardano and ripple all losing between 5-6.5%.
In May this year, Beijing renewed and intensified efforts to regulate cryptocurrencies in China, citing environmental concerns and a need to preserve order and stability. Beijing banned crypto exchanges in 2017 and authorities are increasingly focusing their efforts on bitcoin mining, the process through which bitcoin is awarded to computers solving complex problems. The computer systems needed to mine bitcoin consume vast amounts of energy, which is available cheaply and in abundance in China, though often from dirty sources at odds with China’s climate goals. The crackdown in China has prompted some major crashes across the crypto market and blunted interest in major tokens like bitcoin, which at around $31,500 is currently worth less than half its all-time high of almost $64,000 in April.
14 July, 2021 - 10:15pm