China “Bans” Bitcoin Mining: BTC/USD Crashes as Whales Liquidate
There is extreme fear in the crypto market right now. According to a popular sentiment indicator, traders are apprehensive about fading the primary trend and countering bears.
Bitcoin Fear and Greed Index is 12 – Extreme Fear pic.twitter.com/Uh4BoJhbxo
— Bitcoin Fear and Greed Index (@BitcoinFear) May 22, 2021
As it stands, there are several contributing factors to the current sell-off. After May 19, prices temporarily bounced back to $42k before slumping to below $35k.
This is the current development in China where it is alleged that one Chinese whale is dumping his coins following China–for the umpteenth time–banning Bitcoin.
Still, banning Bitcoin mining operations in China is positive for the ecosystem making the network even more antifragile.
Jiang: Mining in China may changed from large to family miners, even if it causes 50% of the mining machines to fail to operate, there is no problem for the Bitcoin system. But the top mining pools may become European and American mining pools
— Wu Blockchain (@WuBlockchain) May 22, 2021
Bitcoin mining will eventually be green, more decentralized, and sustainable. Once data shows that the network uses renewables, more energy-conscious businesses—even Tesla—could accept BTC as payment.
Ethereum co-founder: “Cryptocurrencies are in a bubble”
Vitalik Buterin, the co-founder of Ethereum, in an interview with CNN Business, said he is not surprised with the recent price crash.
Instead, he believes cryptocurrencies are in a bubble. Still, it is tough to predict when these bubbles will pop. In his view, the bubble might have ended, or the crypto winter could go on for the next few months.
Nonetheless, the tech whiz kid said crypto is ready for the mainstream and that it isn’t a toy anymore. In the coming years–though he isn’t sure when–, he believes the Ethereum market cap will catch up with Bitcoin and flip the most valuable cryptocurrencies.
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