Bitcoin dropped over the weekend amid a focus on Chinese mine closures and potential regulatory scrutiny.<\/p>\n
The largest cryptocurrency fell 5.5% to $34,142 as of 10:50 a.m. Sunday in New York, dropping for a fourth time in the past five sessions. Ether, the second-biggest, declined 5.9% to $2,095.<\/p>\n
The hashrate in China is dropping significantly as Bitcoin mines are being closed, Jonathan Cheesman, head of over-the-counter and institutional sales at crypto-derivatives exchange FTX wrote in an email Saturday, citing reports on Twitter from handle @bigmagicdao.<\/p>\n
\u201cLonger term most see hashrate moving out of China as positive but in the near term may have\/has already resulted in inventory sales,\u201d Cheesman said.<\/p>\n
Cheesman also mentioned the death cross, which occurs when the 50-day moving average drops below the 200-day, but noted that \u201cbacktesting isn\u2019t statistically significant\u201d on the signal for Bitcoin.<\/p>\n
When the coin experienced a death cross in March 2020, for instance, that was at the start of a yearlong rally.<\/p>\n
Cryptocurrencies have been enduring a lull recently. Bitcoin is trading at about half its record high of nearly $65,000 reached in mid-April. The market value of all cryptocurrencies is about $1.45 trillion, as measured by CoinGecko, versus a high around $2.6 trillion last month.<\/p>\n
One of the factors cited has been concern about China clamping down on mining amid concerns about energy usage, and in the wake of deadly coal accidents.<\/p>\n
The city of Ya\u2019an in the southwestern region of Sichuan has promised the provincial authorities to root out all Bitcoin and Ether mining operations within one year, said a person with knowledge of the situation.<\/p>\n
According to a report in the Communist Party-backed Global Times, the closure of many Bitcoin mines in the province has resulted in more than 90% of China\u2019s Bitcoin mining capacity being shuttered.<\/p>\n
About 65% of the world\u2019s Bitcoin mining took place in China as of April 2020, according to an estimate by the University of Cambridge.<\/p>\n","protected":false},"excerpt":{"rendered":"
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