Sino Global Capital has released reports on Bitcoin, China and the changes that are taking place within the Asian giant. Today, most of the BTC miners in the Chinese province of Sichuan will shut down their machines. This has created another variable in the already insecure crypto market.
On June 20 at 12:00 a.m., the mining farms in this province will be shut down. This area is home to one of the largest Bitcoin mining companies in the world, 8BTCnews claimed. Hence, some miners expect a dark age to begin for this sector.
8BTCnews claims that the effects of this move had an impact on the BTC mining sector. The top ten Bitcoin mining pools after Hashrate, AntPool, Poolin, Binance, Huobi Pool, and others are seeing significant losses in their computing power. These losses range from 16%, 21%, 25% and even up to 31.19% on the last day.
Historic Moment: The mining farms in Sichuan will all close in the early morning of June 20, and Chinese miners could usher in the darkest moment # Bitcoin #bitcoinmining
– 8BTCnews (@btcinchina) June 19, 2021
Overall, the Bitcoin network has an average computing power of 129.52 EH / s. Almost 30% fell from its all-time high. This is reflected in BTC’s mempool, and its transaction cost at the time of writing is 19 sat / vB ($ 0.96) for a high priority transaction, at one of the lowest levels in 2021. The minimum fee is the elusive 1 sat / vB.
Source: Mempool Space
Bitcoin mining outlook, complete darkness?
Sino Global Capital presents an objective view of a situation that could only be interpreted as bearish for Bitcoin. The investment firm claims that although some of the BTC mining operations will shut down, some will remain.
In addition, some of the miners with large side assignments have already left the country, the medium-sized and small ones seem to be staying. Since March 2021, the miners expected a crackdown. So you made the necessary preparations.
When further crypto mining bans came from Beijing, Qinghai, Inner Mongolia and Sichuan in May with the stated goal of achieving financial stability, Chinese miners accelerated their migration process to other countries.
Sino Global Capital believes China is attacking sectors that threaten national economic stability, bitcoin mining, and leverage crypto trading. The country could also target activities that enable corruption at the state level.
Miners have taken 3 steps: they have started selling their equipment, stay and watch the regulations evolve, move away. The investment firm expects the distribution of miners on the move to fluctuate.
The overseas migration destinations of Chinese miners are diverse and evenly distributed across North America, Central Asia, Russia, Northern Europe and North Africa. This is actually positive and greatly increases the decentralization of the Bitcoin network.
Nic Carter, a partner at Castle Island Ventures, agrees that migrating the BTC hashrate from China will bring more decentralization to the network. Additionally, Carter believes that BTC mining activities could be relocated to locations where they are powered by 100% renewable energy.
In any case, the MSM narratives are likely to ignore the climate and decentralization benefit of hashrate migration and focus on the perceived “risk” to Bitcoin or “loss of fundamentals” while ignoring the amazing reality that Bitcoin is 50% of its industrial base migrated without difficulty
– nicolás carretero (@nic__carter) June 19, 2021
At the time of writing, BTC is trading at $ 35,562 with a sideways movement on the daily chart. On the 7-day and 30-day charts, BTC has lost 4.4% each.
BTC is moving sideways on the daily chart. Source: BTCUSD Tradingview