Ongoing mining migration and other factors affecting Bitcoin this week

July 28, 2021

As the market awaits another rally to near $36,000 for Bitcoin, the largest crypto in the market is showing signs of strength. That said, the resistance level remains the same as well. The market is in a very complex situation, due to different types of events happening around the world.  Among the biggest events affecting the current performance of bitcoin are the crackdowns on crypto mining in China, which was the biggest bitcoin miner around the world. The impact of the Chinese ban on bitcoin mining can already be seen in the mining market around the world. It was reported recently that the market saw the biggest difficulty decrease in a long time. On Saturday, the market reported a difficulty decrease of 27.94 percent, which shows exactly how impactful a mining ban in China can be on the cryptocurrency market. However, the market expects a further decrease in the difficulty of bitcoin mining. 

However, it is very hard to determine any adjustments in the difficulty of mining before it actually happens. Due to the drop in mining difficulty, it is becoming more economically attractive to many of the participants of the market. Following the record-breaking difficulty adjustment, bitcoin mining difficulty is expected to drop further, which can make the market more attractive for the larger society. 

Bitcoin over $36,000

Once the bitcoin mining difficulty decrease was announced, the price of bitcoin increased to about $36,000. Although the price fell quickly after, some believe that a further increase might be upcoming. Experts are saying that once bitcoin recovers over $36,000, the next major resistance will be around $38,000. A very interesting thing that many pointed out is that the volume supporting the price gains remained low over the weekend. The decline in the volume might be a sign of a lack of interest from major buyers in the market. On the other hand, investor confidence is slowly increasing. The increased confidence of investors might further influence the price increase of bitcoin. 

The increasing popularity of crypto trading

The buzz around the crypto trading market continues to grow. There are more people than ever before who are investing in the market. The best thing about crypto trading is that it is becoming accessible for traders of all backgrounds and experiences. More professionals and highly influential people are also starting to talk about crypto investments. A few weeks back, Tudor Jones said that he believes that cryptocurrencies can be a great addition to the portfolio. As of now, traders can invest in the crypto market even without spending much time understanding the trading market. This is possible due to automated trading. Using such crypto trading bots is very easy as well as rewarding for traders as it can do all of the hard work for them. 

China’s mining crackdown

China has for long been the leader in the crypto mining market. Some of the largest crypto miners were in fact from China. The recent crackdown on the crypto miners in the country already had a huge impact on the crypto trading market. The country’s authorities have said that among the biggest reasons for the crackdown was the environmental impact of crypto mining. Because of this, the country has closed down leading bitcoin miners in the country. While many thought that the authorities from the biggest mining regions of the country would be lighter towards the miners, they were proved to be wrong. Last month, the majority of the mining facilities in the country were closed, including those from Sichuan. The province of Sichuan of China was known as the country’s second-largest crypto mining hub. The authorities in the region went as far as calling on energy companies to stop providing the miners with electricity. The influence of the decisions made in China has already had an impact on the market. While many viewed it as a negative development, there are others who see some positive things in China’s decision. Some believe that the miners who have left China will move to western countries, which might be helpful for the crypto markets in these countries. Another positive thing about the recent developments is that the difficulty of mining has dropped down significantly. This can have a huge influence on the whole crypto market. Because mining is becoming easier, this could increase the interest of people in the market. 

Great mining migration

The migration of leading Chinese crypto miners is already in process, and there is hardly anything that can stop the process. The majority of the miners in the county were already forced out, and these miners are looking for places to continue mining. Crypto miners are looking for places with lower electricity prices and a friendly crypto attitude. Some miners from China have already opened mining facilities not too far from China, in Kazakhstan. Market experts are also reporting that a great destination for miners might be Texas, due to the low electricity prices as well as the friendly attitude of state leaders towards the whole crypto market, specifically bitcoin.