China’s decision to ban Bitcoin abruptly back in May took many people by surprise and it re-ignited the bearish cause considerably. However, after the move’s effects were absorbed by the market and the bullish bias began to appear once again. It seems like the Chinese impact has eventually been absorbed the market entirely and it is no longer a major trend setter.
Bitcoin is currently trading at around $63.2k at press time. The cryptocurrency is closing in on new all-time highs and it appears as if the index will surely go above its previous all-time high of around $64.5k. The bears are currently not in the picture and it seems like the bearish bias of the 2nd and 3rd quarter of the year is a lost cause at least in the short-term.
Leading the charge of the bearish bias just a few months ago was the fact that the Chinese government had started big crackdowns against the crypto sector. That included miners in addition to traders and investors. Previously, the government had turned a blind eye to the miners as the crypto was considered a strategic asset. However, as the government took a u-turn on the proceedings, the miners were driven out of the country in droves and the hash rate fell considerably as well. The move coincided with a downwards trend and as a result, the price almost eventually dropped to $30k and then below it for a short while. Now the cryptocurrency is flying high yet again. Back when China announced the ban, Bitcoin was trading at around $41k. Now, it is well above $62k and that is a considerable recovery for the cryptocurrency.
What actually happened was that Bitcoin mining did take a hit after China’s imposing ban on the entire industry. However, eventually, the miners were able to relocate to other countries especially the United States and that has been actually better for the cryptocurrency as the US energy system is much more transparent and can be accounted for. It is also transitioning to renewable resources openly and that has cooled down some of the criticism regarding the cryptocurrency and its supposed heavy toll on the global emissions.
So, overall, China’s supposedly selfless move to crack down on the digital currency market and the mining industry may have actually backfired completely. Now, it has close to little stake in the future of a massive sector that has helped tens of millions of people around the world increase their worth.
Image Source: pixabay.com
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