According to a recent analysis, China’s crackdown on bitcoin mining activity hasn’t stopped miners from guarding the flagship crypto. Data from the statistics tracker Cryptoquant shows that the outflow from miners is currently not as high as in the first quarter of 2021.
Bitcoin’s bullish trend
BTCs 200 weeks moving average has an almost steep incline. It could mean that China’s recent crypto ban hasn’t really changed the cops’ minds and that Bitcoin could soon hit its ATH in 2021.
Before the ban began in China, the state was once considered the most important mining center in the world. Despite the crackdown, the miners around the world and in China are still there Hold bitcoins in mining wallets.
It used to be estimated that China comprised more than 50% of the world’s bitcoin mining, but now miners are banned due to a government-led crackdown. However, miners who kept their bitcoins in wallets are experiencing a bull market backed by a 200-week moving average.
An established moving average of BTC could represent a potential upward move in the digital asset. Bitcoin’s moving average shows that BTC never ends a month below the 200-week moving average. Bitcoin is showing a bullish trend despite the ban on cryptocurrencies in China.
Since China banned cryptocurrencies in the state, the number of miners has fallen sharply. Miners who held their bitcoins take advantage of BTC’s 200-week moving average.
US miners recover their hashrate
BTC has lost value after the ban, but the coin’s most recent 200-week moving average shows a benign trend.
In addition, US miners have regained their hashrate – the amount of computing power that mining contributed to the network. China’s ban also contributes to a significant Mining difficulties decrease worldwide.
Miners recovered their hashrate due to the decrease in miners’ runoff compared to earlier this year. Once three-quarters of the world’s hash rate in 2019, China has now exposed US miners to a surge in the global hash rate.
Effects of China’s Cryptocurrency Crackdown
China’s crackdown resulted in a “major mining migration,” and miners, particularly in the US, enjoyed a digital coinage frenzy in the months following the ban.
Additionally, the crackdown caused BTC’s hashrate to drop by more than half, allowing miners who are still flooding the market for even bigger profits. For example, the hashrate has decreased by about 4.08% from a year ago, largely contributed by China’s mining ban.
Miners in China rushed to relocate their operations after the ban, as many were skeptical the future of BTC. However, some are already back before the shutdown and expect the situation to stabilize.
Crypto miners around the world don’t seem to be concerned about what China is doing, with many of them preferring to buy bitcoin and wait. Bitcoin is a technological innovation that is geared towards growth and will only progress in one direction, upwards. Those who focus on the long term always benefit from the growth of digital assets.
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