Bitcoin is under the yoke of repression and a Chinese ban. The price of $100,000 before the end of the year already seems unimaginable, and not a real and fruitful fact.
Repression from China and a complete ban on the cryptocurrency market may contribute to the fact that other countries, and of course the United States, will seek benefits from this event.
The total hash power of the world is now relocated to the US. Banks will introduce trading in financial instruments. China's ban on cryptocurrencies is also linked to the migration of mining capacity to the United States.
Back in April, we can recall a total power outage in Xinjiang, which served as a catalyst for the fall of the hashrate. China does not want to take risks when it knows that the hashrate is under US control.
It is more profitable for them to completely ban cryptocurrencies and continue developing their digital yuan, which, by the way, has already been tested for transactions between the UAE and China.
Many countries of the world believe that bitcoin should become the most important protective asset against inflation and a worthy replacement for gold. However, only China does not want to take this idea seriously.
China has completely banned the cryptocurrency market, and the US continues to look for alternatives and create regulatory groups to control the cryptocurrency market. Many American firms are competing to launch bitcoin ETFs in the US and are waiting for a decision from the SEC. The Bitcoin ETF is already successfully traded in Canada.
Gary Gensler is confident that the launch of Bitcoin-ETF can take place as early as this year, but this product must be regulated and strictly comply with the unwritten rules of mutual funds, which must be listed on stock exchanges according to the law of 1930.
Bitcoin can be completely tied to global economic data, as well as the US dollar index. Digital gold can be less volatile and sensitive to various events and calls from different countries.
With regard to the further growth of bitcoin, so far everything is not so clear. However, the fear and greed coefficient still demonstrates the presence of greed on the crypto arena, which can lead to a deep correction.
Now digital gold is below the most important support level, in order to gain bullish movement again and rise to a price of $50,000, bitcoin must overcome the milestone of $43,900.
The material has been provided by InstaForex Company - www.instaforex.com