China continues to expel miners from its territory - Kakiforex.com - Financial Market Media No. 1 in the World China continues to expel miners from its territory China continues to expel miners from its territory
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June 21, 2021

China continues to expel miners from its territory

 The fundamental background for bitcoin remains very weak and even frankly negative. The most important topics that are currently of interest to all participants of the cryptocurrency market are the topics of tightening the circulation and regulation of the cryptocurrency segment in China and the United States. Recall that the Chinese authorities have already banned their financial companies from providing any services related to bitcoin. After that, they made it clear that they oppose mining on their territory, and bitcoin and its "counterparts" pose a serious threat to the country's financial system. In principle, it was all obvious and known a couple of years ago. No government of any country can welcome the presence and circulation on its territory of money or its equivalent, which is not under its control. Thus, in principle, the tightening of the circulation of bitcoin was expected for a long time. At the same time, three or four regions in China have already banned mining. The last was the province of Sichuan, which became known this weekend. On June 18, the Sichuan branch of the National Development and Reform Commission (NDRC) and the Sichuan Energy Bureau, issued a decree that all miners in the district must cease their activities until June 20. After this happened, the bitcoin network hash rate dropped to 110 EH/s. The second no less significant and dangerous topic for bitcoin now is the actions of the American authorities. It's no secret that the States are now desperately looking for new ways to replenish the budget, and one of these options is to raise taxes on everything that can be increased. In particular, taxes will be increased for large companies, corporations, millionaires, and billionaires, and a single corporate tax rate will be introduced worldwide, which will no longer allow multi-corporations to evade payment in "tax havens". But the increase in taxes, or rather their introduction, may also affect the cryptocurrency sphere. Both Janet Yellen and Joe Biden believe that many rich Americans use bitcoin to hide their real income and avoid paying taxes. Therefore, they propose to oblige all cryptocurrency exchanges and other companies that provide the opportunity to conduct transactions with bitcoin to provide information about all transactions to the US Tax Administration. Thus, most of the transactions will now be available to the tax authorities, which, of course, will reduce the attractiveness of "digital gold" in the eyes of investors. All this news continues to put pressure on the bitcoin exchange rate, so we believe that the fall will continue.


In technical terms, on the 4-hour timeframe, bitcoin quotes pushed off from the level of $40,746 and consolidated below the trend line. A little later, the quotes also overcame the Senkou Span B and Kijun-sen lines. Thus, the probability of a further decline in quotes with targets of $30,500 and $29,873 is growing.