By
Temitope Olatunji
April 26th, 2024
Bitcoin investors remain undeterred with the latest news of China’s mining ban as Bitcoin price continues to confidently surge northwards.
Every time the cryptocurrency market start attaining a positive momentum, China throws a hat to spot the party. It happened in September 2017, and it’s happening now. Just two days back, the industry report suggested that China is looking to ban Bitcoin mining in the country.
Surprisingly, the report comes just within a week’s time of the crypto market showing positive momentum. Since the beginning of April 2019, Bitcoin (BTC) and the overall crypto market is showing healthy northward momentum. It looks like the bulls are back in action setting up the stage for the next rally.
Bitcoin continues to confidently trade above $5200 without blinking much to the FUD caused by the China mining ban. The availability of cheap electricity and lower labor costs makes China a hot destination for crypto mining activities.
The news of mining ban arrived on Tuesday, April 9. However, Bitcoin continued its northward journey while crossing the $5400 today. At the press time, Bitcoin is trading at $5200 with a market cap of $91.7 billion.
As per the CoinMarketCap weekly charts, Bitcoin has steadily gained nearly 10% in the last seven day.
Mining Ban Can Push BTC Price Higher
While many may think that the crypto mining ban by China can have a negative effect on the industry, eToro‘s senior market analyst Mati Greenspan thinks otherwise:
“If this ban does end up happening, it is more likely to push BTC prices up than down,” said Greenspan. “The loss of cheap Chinese electricity would raise the mining cost, which is net positive on price. It would also serve to kill the FUD that Bitcoin mining is centralized, which could further drive up the price of BTC.”
In another exclusive comment to Coinspeaker, Greenspan said:
“Rumors that China may end up banning crypto mining don’t seem to be having any affect on Bitcoin prices today. If anything, this story is a strong reminder that bitcoin is a decentralized network and it operates independently of governments and banks.”
Also, Brian Kelly, the chief executive of BKCM and host of CNBC “Fast Money” show said that the stage is all set for Bitcoin to climb towards newer highs.
Bitcoin is up more than 30% this month and @BKBrianKelly says it could hit new highs by this date… pic.twitter.com/afC58AqIGW
— CNBC's Fast Money (@CNBCFastMoney) April 10, 2019
With over 30% gains in April itself, Kelly expects Bitcoin to touch $6000 in the short time. Kelly stresses that institutional players are loading their bags at this time. He states “high net-worth individuals, family offices, are starting to take a serious interest” in Bitcoin.
Can Bitcoin bring back its lost glory of late 2017 and early 2018? Share your thoughts in the comments below.