Bitcoin has increased by 9% after sprawling around the $31k mark this week. However, the bear market is far from over, and we may likely see another price correction by next month. Earlier this week, the price of the crypto asset had touched the $28k sending shocks around the whole crypto community. Although most crypto traders are still on their toes waiting for the worst to happen.
The price of the foremost cryptocurrency has been fluctuating between the $30k and $35k region since this week. While the asset has leaped by 9% to $33k, its fate may be decided by the unlocking of the Grayscale Bitcoin Trust (GBTC) which may see it spiral to $25k. Expert analysts at JPMorgan Chase had predicted $25k as the date for GBTC unlocking draws near. The Bitcoin Trust unlock would see about 16,000 BTC released to investors on July 19. The expert analysts said the release may likely trigger selling pressures from investors.
Bitcoin is the largest cryptocurrency pooling a market capitalization of $622 billion, which is equivalent to 47% of the entire $1.3 trillion market. Ethereum, the second largest by rank and market cap shares $217 billion, a significant 16% of the entire market. Ethereum is currently trading at $1841 after falling to $1,700 on Thursday of this week. Bitcoin’s dominance is really in play with respect to other altcoins.
Market Crash Began in May
The market crash had begun in May after Bitcoin climbed to its all-time high (ATH) in April. The bull run in April saw the price of the asset leap to $64,000. Ethereum was trading at $4,000. Some other altcoins attained new ATHs as well. Following the May crash, BTC retraced to $30k and altcoins had collapsed by -50%. While most crypto investors think the price corrections are not yet over, others believe the next month will be bullish for the entire crypto market.
China’s Ban Bitcoin Mining Affects Hashing Power
China’s harsh regulatory efforts on Bitcoin mining has had a role to play in the series of price fluctuations the market has witnessed since the month began. Bitcoin miners have been leaving the country in droves to other regions where their mining activities are not prohibited. Following a shutdown order in the Sichuan Province, the total hashing power for Bitcoin mining had reduced by 17%. Before the mining ban, the Asian country contributed 65% to the global hashing power for Bitcoin as most miners of the asset were situated there.
The past few weeks have seen Chinese Bitcoin miners setting sail in regions such as Texas, Kazakhstan, Serbia to continue their mining operations. Francis Suarez, mayor of American city Miami, had a week ago called out to the miners to consider the city as they leave China. Miami boasts of cheap nuclear energy which the mayor thinks would be relevant to mining of Bitcoin and other cryptocurrencies. Mayor Suarez further proposed tax concessions as one of the incentives for the miners.
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