China is massively shutting down miners

Bitcoin has been losing more than 4% in the last 24 hours and changing hands for $ 32,600. In general, this can be considered good news for the cryptocurrency market, since the coin still confidently bounced above an important technical and psychological level and is still quite confidently holding there. Cryptocurrency price dynamics are broadly mixed, reflecting investor confusion and a willingness to wait and see until clearer fundamentals emerge. The situation can be seriously affected by the development of events with mining and hash rates.

At the moment, the computing power of the network is dramatically falling, as Chinese miners massively shut down their equipment. This will not lead to the collapse of the blockchain, however, it significantly affects the mood, in addition, it is generally accepted in the crypto market that the direction of the Bitcoin price depends on the direction of the hash rate. The largest mining pools are moving to different countries. 

So, for example, BTC.com moves to Kazakhstan. However, there are more interesting destinations like Miami, where the mayor personally invited the Chinese miners. “Nevertheless, miners still fear that they will face significant cost increases and hidden legal problems. For the sector as a whole, the current process is more positively assessed, since the dispersal of Chinese computing power around the world will mean more decentralization, which in the long term will have a positive effect on the Bitcoin exchange rate”, said the FxPro analyst team.