Is China making Bitcoin sink? - - Financial Market Media No. 1 in the World Is China making Bitcoin sink? Is China making Bitcoin sink?

May 26, 2021

Is China making Bitcoin sink?

 Bitcoin showed a rather impressive growth yesterday, but in general, it is now in a downward direction. Nevertheless, by and large, the fall of the cryptocurrency with the entire cryptocurrency market, has already happened. Now, we need to think about the further prospects of the first cryptocurrency in the world, and not mourn its fall by $36,000. I would like to note right away that despite the rather attractive current levels of bitcoin, investors do not rush to the market with their money to invest in digital gold. Yesterday, thanks to Elon Musk, the cryptocurrency market revived a little, but in general most investors and traders are now inclined to sell bitcoin rather than buy it. Considering what measures the authorities of China and the United States are planning to take, it is very difficult at this time to count on the growth of bitcoin at $100,000 per coin. In China, the topic of a possible ban on mining is becoming very popular. The media are spreading information criticizing bitcoin with might and main, approving the proposal of the authorities to completely ban mining and seriously complicate the circulation of cryptocurrencies in the country. According to an article by China's Xinhua News Agency, illegal and speculative bitcoin transactions, and illegal token issuance can entail large losses for investors and affect the financial stability of the state. The authors of the article note that the hype and chaos around the cryptocurrency should be stopped. They believe that Bitcoin will never become a currency, and investors and financial institutions are not recommended to deal with this asset. The article also contains information regarding mining farms and other projects that "mislead the authorities." The news agency warns of the responsibility of all organizations involved in mining. According to some reports, several mining pools have already ceased their activities in China. Some analysts believe that this time is critical for Bitcoin. Many note that in the near future, there may be an overflow of the bitcoin hash rate from China to its borders. Simply put, mining farms will be transferred to territories with a more loyal attitude towards them. Also, some analysts believe that the war on mining in China will make bitcoin greener and safer for nature.

Technically, bitcoin on a 4-hour timeframe is currently trying with all its might to move away from its local minimums. But even in spite of a strong pullback from the level of $29,873, it still cannot be said that the downward movement is over. As you can see, the price has not yet even managed to overcome the Ichimoku cloud; in the last hour, the cryptocurrency does show a desire to start a new round of falling quotes.