Bitcoin News: In June, the price of the largest cryptocurrency ranged from $ 28,700 to $ 41,250. This month was pretty rich in news, so there was high volatility in the market. The main reason for the volatility was undoubtedly the bans by the Chinese authorities: the cryptocurrency is no longer available in the four largest provinces of China.
The truth is that by June 2021, about 58% of Bitcoin was mined in China. However, after the bans were introduced, this indicator and the overall hash rate of the network decreased. By June 28, 2021, a new anti-record has been set: the hash rate of the Bitcoin network has dropped below 60 EH/s, resulting in a new block extraction time from just 10 minutes to 24 minutes in a stable environment.
News about the upcoming bans in China started to emerge after June 10, and the market reacted sharply to them at first. But after several similar news, the price of the mainstream cryptocurrency finally did not succumb to the strong volatility and managed to maintain its current position.
Representatives of its industry believe that such a step from the Chinese authorities is due to the active testing of the state3-linked cryptocurrency (CBDC) in the country. Therefore, the cryptocurrency mining ban seems logical to the authorities: They may be in an effort to dominate the market with the national cryptocurrency.
In addition, the five major banks in China are no longer able to provide services related to cryptocurrencies. They may not store, transfer, buy or sell digital assets. It will now be more difficult for crypto companies in the Middle Kingdom to transfer, legitimize their profits and store cryptocurrencies within the country.
It is estimated that about 330 tons of mining equipment will be extracted from China. Some miners have offered to help miners in distress with transporting equipment, and Kazakhstan and Russia have become target destinations for miners.
What options does the crypto industry have before it?
Chinese miners can adapt to new bans and continue to mine cryptocurrencies. Historically, Chinese citizens are consistently familiar with certain prohibitions, and this may have given them the ability to live with or avoid them.
On the other hand, the USA can step in. As we know, America likes to be first in everything. However, the fact that more than 58% of Bitcoin was mined in China has made the US authorities somewhat concerned. But now is the best moment for America to enter the game, with the situation in the country unstable when it comes to cryptocurrencies and their production. They can provide preferential conditions for the establishment of mining on their territory, give loans at low rates.
The second scenario is not so bad, as the crypto industry will be infused with new money that will drive up the price of Bitcoin and altcoins. But not everyone likes this option, because if the US gets most of the miners on its territory, it will of course have a new leverage to use once.