It seems that nothing can beat Bitcoin as it keeps growing amid China’s ban on mining.
The famous Chinese crackdown on cryptocurrencies is now 150 days old, and since then BTC has benefited from it. Months ago, China tightened its grip on BTC and banned mining, consequently, the crypto section was shaken a bit.
Bitcoin Benefits from China Ban
Cryptocurrencies were not the first to witness a hostile ban from the Chinese government, as the country is known for it. Still, like the previous ‘bans’ this particular one also caused great changes in the BTC price, which were in concordance with a major upheaval in the history of Bitcoin.
China would no longer allow Bitcoin mining, therefore the BTC minors had to move their activities out of China, which caused a 50% downfall in the network’s hash rate. The following months were quite challenging for these miners.
Bitcoin Prices Bounce Back After Crackdown
The crypto sector experienced a rapid recovery as there is nothing left to show from the crackdown consequences. Bitcoin is back on its feet and the network is again as secure as before, with BCT prices skyrocketing each week.
Willy Woo, a leading Bitcoin on-chain analyst, got on Twitter to express his opinion on this. He ‘thanked’ China for the boost in BTC prices and indirectly said that the country will regret its ban on crypto.
He jokingly referred to these actions as ‘selfless’, as they reap more benefits for Bitcoin than China.
This month's shout out goes to China, for selflessly helping #bitcoin remove the last area of major centralisation in its network at her own loss, and the loss of her children and her children's children. 🙏
— Willy Woo (@woonomic) June 28, 2021
China ‘Selflessly’ Helping BTC
Prices have increased by 50% and the network is decentralized, things are only looking good for Bitcoin, added the analyst.
The China Bitcoin ban in September of 2017 also had an overall positive effect on crypto, and the same thing is happening again with the 2021 ban.
Moreover, the US became the most important destination for Bitcoin miners amid China’s crypto ban.
Bitcoin Miners Not Selling Their Funds
Since China’s exit, miners are holding on to their assets as they are hoping for long-term gains. They are staying on the ‘bull side’ as they are holding BTC in mining wallets.
Long-term hodlers and miners are reluctant to sell and this absence of selling pressure from miners is caused by the recent price movements in the BTC market.
Despite BTC’s near-all-time-highs, miner outflows are modest and reserves are around historic lows, according to data from CryptoQuant, a community-driven analytics platform.