Last week, Bitcoin crashed following China’s decision to ban crypto mining in the country. For the first time since January, Bitcoin was trading below ,000. While the price of Bitcoin has recovered a bit, investors remain uncertain about the possible direction the market could take. China, being the biggest Bitcoin market in the world, has decided to continue its massive crackdown on crypto miners in the country. The impact of China’s decision on the trading market was dramatic. While the short-term impact affected investors, some expected that China’s ban might actually be a positive thing for the western world. One of the representatives of Gemini talked about this last week, saying that the mining industry is very likely to move to the western world, which could
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Last week, Bitcoin crashed following China’s decision to ban crypto mining in the country. For the first time since January, Bitcoin was trading below $30,000. While the price of Bitcoin has recovered a bit, investors remain uncertain about the possible direction the market could take.
China, being the biggest Bitcoin market in the world, has decided to continue its massive crackdown on crypto miners in the country. The impact of China’s decision on the trading market was dramatic. While the short-term impact affected investors, some expected that China’s ban might actually be a positive thing for the western world.
One of the representatives of Gemini talked about this last week, saying that the mining industry is very likely to move to the western world, which could be a very positive thing for western countries in the long run. While this could be true, the environmental concerns surrounding crypto mining remain, which is affecting the Bitcoin price a lot.
Crypto Trading & Bitcoin
Trading cryptos, specifically Bitcoin, has become very popular in recent years. 2021 has proved to be a successful year for cryptocurrencies. Bitcoin, as well as altcoins, hit all-time highs at some point over the past few months. In April, Bitcoin was trading over $64,000 for the first time in history.
The popularity of crypto trading is further supported by the increased number of online crypto exchanges, offering traders access to the market in just a few clicks. Investors can now download crypto exchanges on their smartphones, buy, sell, and store cryptocurrencies in one place.
Furthermore, trading cryptocurrencies does not require a lot of knowledge about the market anymore. Trading automation is capable of doing everything for traders. For example, companies like Bitsgap have created crypto trading robots that are capable of analyzing the market, as well as opening, buy and sell orders.
However, while crypto trading is becoming more accessible for everyone, there are more people who are talking about the possible influence of Bitcoin mining on the environment. Many influential people, such as Elon Musk, CEO of Tesla, have recently come forward to discuss the impact of mining on the environment. Tesla even halted receiving Bitcoin payments for car purchases due to the said concerns.
All of this is weighing heavily on Bitcoin price, putting additional pressure on the price. However, there also are some positive developments around the world. This includes El Salvador’s adoption of Bitcoin as a legal tender, which is taking Bitcoin one step closer to the long-awaited mainstream acceptance. But the questions still remain unanswered for investors. Are the positive developments in the market enough to support Bitcoin, or is the worst still to come?
Is the Bitcoin crash over?
The migration of China’s crypto miners and the decisions made by Chinese authorities have been something that every crypto enthusiast has been discussing over the past week. The decision of Chinese authorities to ban crypto mining in the country was first seen as something that would not have a massive impact on the biggest mining regions of the country.
However, one of the biggest crypto mining hubs in the country, the Sichuan province, saw a massive crackdown last week. The authorities of the province addressed the crypto miners in the region last Friday, giving them only 3 days to halt any activity and leave the country.
This was not all, however. The authorities also contacted the energy providers, ordering them to halt providing energy to the crypto miners. The representatives of Sichuan authorities visited the sites to make sure that the activity was closed.
According to Chinese authorities, specifically representatives of the Sichuan region, one of the major reasons for the crackdown is the environmental impact of crypto mining. The authorities of Sichuan said that the region failed to meet its environmental goals, blaming crypto mining for the failure.
Known as the Great Mining Migration, some believe one of the main destinations for the former Chinese miners might actually be the USA, more specifically, Texas. Texas is known for having one of the cheapest energy around the world, a part of which is coming from renewable sources. A perfect combination for crypto miners.
The best thing is that the leaders of the state are very much crypto-friendly, welcoming the miners in the state. However, it is still not officially known if the miners really decide to go to Texas or not. One thing is clear, however. The miners are aiming at the regions with the cheapest energy.
El Salvador’s decision
On the flip side, there is some positive news around Bitcoin as well. El Salvador announced about a half-month ago that it was ready to adopt Bitcoin as a legal tender. The news supported the price of Bitcoin to increase, but because there are so many things going on in the market, the impact of it was quickly reversed by the negative events.
That said, the news is still very important for the crypto market. It means that cryptocurrencies, specifically Bitcoin, are nearing the long-anticipated and awaited mainstream. The country plans to adopt Bitcoin officially starting in September, and although the World Bank decided to not help the country in the process of Bitcoin adoption, El Salvador is still committed to making the plan work.
The country has recently announced that it would provide $30 worth of Bitcoin to everyone who would download the government’s cryptocurrency application. The main aim of the announcement was to popularize the cryptocurrency in the country and get ready for the larger adoption.
How things might develop in the crypto trading market is still very hard to say, there are simply too many things happening at the same time. However, one thing is clear: cryptocurrencies are becoming more and more popular around the world every day. With countries like El Salvador, the large-scale adoption of cryptocurrencies might be closer than we would think.
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