Bitcoin: miners return to the network, but China plans to keep tightening the screws

News from some sources, as well as data, suggests that some of the former Chinese bitcoin miners have returned to the network again.

In the summer of 2021, China banned bitcoin mining, and it looks like miners who left China have settled in new territories. There are reports that some of the companies have moved their facilities to countries such as the United States, Russia, and Kazakhstan, and this process is still ongoing.

According to a recent article published in Forbes, Bitcoin's hash rate is currently recovering about 85% from its low that was reached after the Chinese crackdown. The author of this review notes that this fact is not necessarily evidence of a return to the market of Chinese miners. This may be because the US miners are introducing new installations into the network.

Meanwhile, China does not intend to change its policy. The People's Bank of China reaffirmed its stance on crypto repression at a recent media briefing. It stressed that virtual currency transactions are just "pure hype" and advised the public to raise risk awareness and deliberately stay away from cryptocurrency to protect their pockets.

People's Daily Online magazine reported on a statement by Yin Youping, deputy director of the Financial Consumer Rights Protection Bureau of the People's Bank of China. He spoke about the future strategy of the Central Bank, stating that the next step would be to create a normalized working mechanism, which will be accompanied by a high pressure situation.

In addition, Youping emphasized that the persecution of cryptocurrency across the country will continue. He also asked the general public to report immediately if they find any evidence.

The central bank will continue to expand its cryptocurrency suppression policy by actively collaborating with the lead division of the China Banking and Insurance Regulatory Commission. They aim to detect and stop illegal fundraising activities using virtual currency and blockchain.

To achieve its mission, the bank focuses on "building a system, monitoring and early warning, advertising and training, and decisively fighting the use of virtual currency and blockchain."

It is difficult to say whether this news caused yesterday's breakdown of the support level of 48,178.13 by bitcoin. But from a technical point of view, it is too early to panic, and to abandon the scenario of local growth too. The lows of yesterday's candlestick, which broke through the level of 48,178.13, have not yet been updated. Yes, and today's candle looks somehow suspicious, even though it is not closed yet. Maybe in the end it will turn out to be a false breakout, and even with the formation of a bullish engulfing. Although, this is nothing more than an assumption since the daily candle is not closed.

As for the forecast for BTC/USD, it has not changed since yesterday. If the breakdown is true, the price may fall to the level of 44,807.24. And if the assumption of a false breakdown is justified, then further growth is not excluded.

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The material has been provided by InstaForex Company - www.instaforex.com

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