Home
News
- Bitcoin price has again seen a severe dip below $29k
- Chinese regulators have been known as the reason behind the price fall
- China’s Sichuan which contributes more than 75% of the BTC mining hashes has prohibited mining firms continuing their operations in the region
- Facing regulators concerns miners of the region are selling off their BTC holdings to allocate their operations
- Where miners are selling their holdings, big investors are accumulating those assets in their portfolio
Bitcoin price has again seen a severe dip due to mining and regulatory issues. On Tuesday, the price of the flagship crypto coin slipped below the level of $29,000. Notably, the down-trend was observed after Glassnode shared a report estimating the possibility of miner capitulation in China. Many experts in the cryptosphere considered that a seismic mining shift has caused the dip. However, the shift of miners has been forced by the Chinese regulators.
Chinese enforcements are dumping Bitcoin price
On Tuesday, Bitcoin price fell by more than 7% to hit a five month low of level. The cryptocurrency market saw the prospect of another sharp dip. Notably, the recent crash is caused by The People’s Bank of China.
Read More: Chinese clampdown on Bitcoin mining intensifies, prices plunge further
Read More: Bitcoin price surged again after few corrections in its price
On Monday, the Chinese central bank stated that it had summoned multiple regional institutions. Such institutions include Agricultural Bank of China, China Construction Bank, Industrial and Commercial Bank of China, and Alipay, Jack Ma’s payment platform. The summon was made to strictly implement its recent ordinances on suppressing the cryptocurrency industry in the country.
According to a local media report, the Sichuan province of China ordered its 26 largest crypto mining firms to stop their operations.
Why is the Chinese BTC mining curb significant?
The Sichuan province of China had been contributing 75% of the total bitcoin mining hash. On the other hand, many experts claim that the Chinese market has a dominance of more than 30% of the entire cryptocurrency industry globally. Notably, the restrictions on miners, caused a decline from circa 155 exahashes per second to 125 exahashes per second. Hence, the restriction to mining operations followed a plunge in the Bitcoin price.
Chinese miners are planning to migrate
A recent report from Glassnode, an on-chain data analysis firm has revealed that Chinese miners are either shutting down or migrating. The analysis firm reported that the cryptosphere could witness one of the largest migrations of Bitcoin miners in history.
Read More: Michael Saylor educates people on Bitcoin mining at Bitcoin Mining Council
Read More: History beckons Bitcoin price as indicator suggests onset of bullish trend
Glassnode, also revealed that the mining industry in the strictly regulated zone would likely to liquidate a portion of their BTC holdings to reallocate the firm. Such sell-offs show BTC miners hedging risk. Meanwhile for other miners it remained a complete exit from the industry. Hence, the stats showed us that the miners’ accumulation has declined.
Big investors are accumulating miner’s distribution
The miners are selling their BTC in holds, and bigger investors are accumulating the coins. Firms like MicroStrategy have continued to purchase the dip. According to Jonathan Ovadia, CEO of OVEX crypto exchange, the continuous addition of Bitcoin by MicroStrategy is based on a very deep conviction of the potential future up-trend. On the other hand, observing both the recent Bitcoin price crash, Glassnode concluded that almost the full inflow size has been observed by buyers.
