The actions of the Chinese authorities scared local miners
Analysts predict a "seismic cryptocurrency shift" amid China's crackdown on mining.
China surprised even those who were not members of the local crypto community with its aggressive actions towards mining and cryptocurrencies. Already, three large companies in recent days have announced plans to curtail the production of tokens after a meeting of the State Council of China.
According to experts, the market can expect “turbulence”. Bitcoin, meanwhile, has already responded to events by dropping 17% this weekend. But now the price of the main cryptocurrency has leveled off, gaining a foothold above $36,000.
Miners in China started to panic. While some of them are already selling their coins, others are asking for support from foreign miners. Over the past two days, especially productive miners have begun to accelerate the process of migrating their capacities to other countries. This was announced by the head of Bixin, a Chinese BTC mining firm. He also predicted an increase in the number of miners in the secondary markets. Which, in principle, will hardly surprise anyone after such actions by the Government.
One of the partners of Primitive Ventures announced that many miners intend to sell their rigs to locals, or send them abroad. WeChat and Weibo filled in miner sale ads. As an example, it cited 20,000 installations for sale in one “lot”. Most of them consist of WhatsMiner M20 and AntMiner 319.
China's BTC.top pool, which accounts for about 2.7% of the total Bitcoin hash rate, announced that its subsidiary business will stop serving mainland Chinese customers. Some sources claim that the company intends to move capacity to North America.
A branch of Huobi, which owns its own mining pool with 8.9% of the BTC hash rate, also announced the termination of the provision of brokerage services for new users from mainland China. But at the same time, the mining pool itself will continue to work as usual.
According to the community, fluctuations in pBTC35A, a token launched by one of the world's largest mining pools, Poolin, also indicate bearish activity. After a statement from the authorities, its price dropped from $108 to $74 per coin. At the same time, the pool itself accounts for more than 17.9% of the Bitcoin hash rate.
At the moment, the situation is complicated by the fact that while the crypto community in China cannot understand how tough measures await it. The only clear effect for today is the most bearish sentiment among Chinese mining companies. In addition to miners, after the meeting of the State Council of China, exchange tokens Huobi, OKEx, and Binance also suffered. Their value dropped over 35% over the weekend.
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