Bitcoin Market Rejects China’s Mining Ban Fear
Recent news that China is planning to eliminate the crypto mining industry from within its borders has not really swayed Bitcoin market sentiment.
Chart flows from Coinmarketcap and TradingView show the top cryptocurrency has maintained a firm grip on its over $5,000 price and, going by the state as at this writing, could even be considered to be getting stronger since the news hit on April 8.
Coming from China’s state economic planner, the National Development and Reform Commission (NDRC), the planned elimination as contained in a draft version of the 2019 Directory Catalogue on Readjustment of Industrial Structure is quite serious for the kind of news from a top Chinese institution that is capable of sending Bitcoin price on a nosedive. However, the response it got has been somewhat startling – though transactions per day took a hit.
Coinmarketcap shows the news might have dropped the price slightly from its climb at $5,315 to $5,215 but it has since picked up almost immediately to maintain the $5280 range as at Wednesday April 10. Independent analyses on TradingView suggest that the trend emerging on the Bitcoin price chart could potentially signal upward breakout especially by May and, of course, not without pullbacks.
$BTC SuperGuppy shows confirmed uptrend
I don't always guppy but when I do… it's a thing of beauty watching these EMAs turn blue and green for the first time in 16 months pic.twitter.com/MPUE0zGBNU
— Josh Rager 📈 (@Josh_Rager) April 10, 2019
The NDRC, in its notice, mentioned that the planned elimination is as a result of the energy consumed by Bitcoin mining. However, the likes of the founder of Binex.Trade, , thinks the proposed move by China may not hold eventually though it is still being reviewed. This is because he believes an alternative source for the energy use could and would be sought. Otherwise, he adds, it would be a mistake for China to go ahead with the ban for the move will also eliminate its monopoly as the single country with the largest concentration of Bitcoin mining activities in the world.
Nonetheless, while the world awaits the Chinese government’s conclusion, the shared news has fed on a few possibilities many in the crypto ecosystem had yearned for – a demobilization of the purported Chinese mining centralization; an adjustment in the difficulty rate thus making Bitcoin mining more profitable elsewhere (outside China); and the eventual result being more decentralization in mining. Obviously, getting the elimination enforced may not make mining activities in China disappear altogether at once, it would lead miners to countries where access to cheap electricity is available. The more mining becomes accessible worldwide, the higher crypto mass adoption is expected to be achieved.
Another key reason that may have contributed to the market’s firm stand against uncertainties reflecting badly on Bitcoin price could be that many of those still left in its market now are mainly investors that have stuck with the currency for quite a while. From holding through a market that retraced almost 90% throughout 2018 to having supposedly heard several negative Bitcoin-related news from China, the waning bear market taught and left much experiences for the industry. Hopefully, the confidence would last for long.