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China starts to crack down on crypto mining operations

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A major Chinese bitcoin mining hub is shutting down its cryptocurrency operations

GUANGZHOU, China — China’s Inner Mongolia region plans to ban new cryptocurrency mining projects and shut down existing activity in a bid to cut down on energy-consumption.

 

Bitcoin is based on a decentralized network, which means it’s not issued by a single entity like a central bank. Transactions, recorded on a public ledger called the blockchain, need to be “verified” by miners.

 

These miners run purpose-built computers to solve complex mathematical puzzles that effectively allow a bitcoin transaction to happen. The miners receive bitcoin as a reward and that is the incentive. But because the computers are high-powered, they consume a lot of energy.

 

Bitcoin mining consumes an estimated 128.84 terrawatt-hour per year of energy — more than entire countries such as Ukraine and Argentina, according to the Cambridge Bitcoin Electricity Consumption Index, a project of the University of Cambridge. China accounts for around 65% of all bitcoin mining globally — Inner Mongolia alone accounts for about 8%, due to its cheap energy. In comparison, the United States accounts for 7.2% of global bitcoin mining. Not all cryptocurrencies work like bitcoin, however.

 

Inner Mongolia, located in northern China, failed to meet central government assessment targets regarding energy use in 2019 and was scolded by Beijing. In response, the region’s development and reform commission laid out plans to reduce energy consumption. Part of those plans involve shutting down existing cryptocurrency mining projects by April 2021 and not approving any new ones. They also involve reassessing other energy-intensive industries like steel and coal.

 

While the Chinese government has backed the development of bitcoin’s underlying blockchain technology, it has looked to crack down on digital currencies themselves. In 2017, Beijing banned initial coin offerings, a way to issue digital tokens and raise money. The government has also cracked down on businesses involved in cryptocurrency operations, such as exchanges.

 

China is also pushing to become more environmentally friendly. President Xi Jinping said last year that the country is targeting peak carbon dioxide emissions by 2030 and carbon neutrality by the year 2060.

source: https://www.cnbc.com/2021/03/02/china-bitcoin-mining-hub-to-shut-down-cryptocurrency-projects.html

 

As many people know, most crypto mining operations, especially Bitcoin, are located in China. But since crypto mining can consume a lot of electricity, one region from China decided to pull the plug on mining. As the article in the link above mentioned, Inner Mongolia plans to shut down existing miners and block new miners from operating.

 

This move by Inner Mongolia may then cause a ripple effect on nearby provinces as the country is trying to commit on its promise to reduce its carbon emission as part of its pledge to reduce global warming.

 

The effect of this news to the crypto world? Traders may start to panic if this is to be taken as negative news, and crypto prices may fall as a result. But if taken in a (slightly) positive light: in the case of Bitcoin, lesser miners will mean lesser supply to flood the market with, and Bitcoin miners outside Chinese jurisdiction can enjoy lesser competition. Prospective new crypto mining projects may want to seek better locations for their crypto mining operations.

 

Aside from my conjecture above, how are the crypto miners going to react to this?

 

And how about you? How do you think this news is going to affect you?

 

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On 3/4/2021 at 8:31 AM, kyoukage01 said:

Aside from my conjecture above, how are the crypto miners going to react to this?

I do not think this new will have the bigger impact in the cryptocommunity and cryptocurrency markets. You know, Bitcoin mining is itself highly competitive as the miners are struggling to find the new blocks. New mining farms are actively coming into the existence so there is no need to take much worries IMHO. 

On 3/4/2021 at 8:31 AM, kyoukage01 said:

And how about you? How do you think this news is going to affect you?

Nope, no effect at all as I am a long-term Bitcoin investor and enjoying to hold it😜

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On 3/4/2021 at 4:46 AM, kyoukage01 said:

This move by Inner Mongolia may then cause a ripple effect on nearby provinces as the country is trying to commit on its promise to reduce its carbon emission as part of its pledge to reduce global warming.

I think that we need to monitor the situation. I don't know exactly which provinces in China are doing most of the mining, but I have a feeling that China right now doesn't want to mess with Bitcoin alone. The new Silk road China was creating has been put to a halt since the pandemic, and it seems that China doesn't want to anger anyone right now. There is a lot in play but I don't think Bitcoin mining will just suddenly be banned and persecuted. It is one of the thousands of industries that had been thriving in China and had its impact, even a small one so far to the Chinese economy.

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On 3/5/2021 at 1:34 PM, Whited35 said:

I do not think this new will have the bigger impact in the cryptocommunity and cryptocurrency markets. You know, Bitcoin mining is itself highly competitive as the miners are struggling to find the new blocks. New mining farms are actively coming into the existence so there is no need to take much worries IMHO. 

An interview with a CEO of one of the affected mining pool companies said so too, regarding on the effects on the new restrictions by Inner Mongolia.

Quote

“This incident had little effect on us,” said Jiang Zhuoer, the CEO of BTC.TOP, one of China’s major mining pools, told Forkast.News. “We took into account the uncertainties in Inner Mongolia, so there are [now] only a few mining machines in Inner Mongolia and most of them are in the more stable mines in Xinjiang.”

source: https://forkast.news/inner-mongolia-shut-down-crypto-mining-china-bitcoin-miners/

 

But it looks like China as a whole is serious with the whole power consumption issue. Here is an excerpt from the same article above.

Quote

"However, this time the shutdown may be permanent. 

 

In the 2019 United Nations general assembly, President Xi Jinping pledged that China would halt the rise in its carbon emissions by 2030, and achieve carbon neutrality in 2060. Controlling energy consumption and gradually achieving carbon neutrality is an important goal that has been written into China’s 14th Five Year Plan draft, a crucial guiding document for the country’s future social development and economic growth. The plan is revised every five years, and the latest version is for 2021 to 2025."

source: https://forkast.news/inner-mongolia-shut-down-crypto-mining-china-bitcoin-miners/

 

The carbon emission is a big issue for them, as some of their cities can "boast" of being one of the most heavily air-polluted places on the planet. Cryptocurrencies especially Bitcoin, being such a guzzler when it comes to power consumption, are now being targeted in an effort to reduce power consumption and therefore pollution.

 

If current crypto mining companies can do something and be able to move out their operations to safer havens at the earliest possible time, then there won't be much effect on the crypto markets. That is, if majority of miners do not end up on places where the local government will also tell them to p*** off anytime soon.

 

Edited by kyoukage01
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1 hour ago, kyoukage01 said:

But it looks like China as a whole is serious with the whole power consumption issue. Here is an excerpt from the same article above.

So many countries in this world are actively working to minimize the carbon emission and all countries are not using hydropower as the main source of electricity. In this case, like you have said, so many mining farms have to search the alternative energy sources like Ukraine did for nuclear power. In my opinion, PoW based blockchain will lose the mainstream adoption trend due to the notorious energy consumption problem in future. Maybe, there will be discussions about the protocol upgrade even for Bitcoin no matter how challenging will it be 😜

 

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Yes you are right bro and i agree with your information and data about this idea and this idea is very useful and helpful for me and all other users who are working on it and earn a much and more profit from this online earning and learning platforum. Some countries are also want to damage but i think they will not be successful because this is a world wide programme which is used in all over the world and earn amuch and more profit from this site that you wnat from it.

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On 3/9/2021 at 9:15 PM, kryptonick said:

I think that we need to monitor the situation. I don't know exactly which provinces in China are doing most of the mining, but I have a feeling that China right now doesn't want to mess with Bitcoin alone. The new Silk road China was creating has been put to a halt since the pandemic, and it seems that China doesn't want to anger anyone right now. There is a lot in play but I don't think Bitcoin mining will just suddenly be banned and persecuted. It is one of the thousands of industries that had been thriving in China and had its impact, even a small one so far to the Chinese economy.

It looks like China is getting too strict on their reduced carbon emission policy. At least this is what I've been getting after reading a few more articles on this event. Industries in the country will have to strike a balance between performance and power consumption, and for Bitcoin miners to survive, they have to adapt to the situation as well and do something about the power consumption issue.

 

On 3/11/2021 at 1:38 PM, Whited35 said:

In my opinion, PoW based blockchain will lose the mainstream adoption trend due to the notorious energy consumption problem in future. Maybe, there will be discussions about the protocol upgrade even for Bitcoin no matter how challenging will it be 😜

Nakamoto-san envisioned that Bitcoin miners will switch exclusively to transactions at some point in the future once all the available BTC have been mined out. Maybe the time for miners to focus more on transactions is closer than we think. As of today, more than 18 million BTC has been mined out anyway; after three or four more halvings, profiting exclusively from mining alone may not be worth it due to even more computation difficulty compared to today. More computation difficulty will mean more power consumption (assuming that no new more powerful but energy-efficient hardware has been developed by that time).

 

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16 minutes ago, kyoukage01 said:

Bitcoin miners to survive, they have to adapt to the situation as well and do something about the power consumption issue.

Due to increasing population, demands of electricity is also increased globally. In this case, even alternative energy sources like solar power plants, nuclear power plants, etc. could be the best options but initial setup of the foundational components are extremely expensive. So miner alone can do nothing to fulfil the power consumption demands to run the mining equipment. 

20 minutes ago, kyoukage01 said:

Maybe the time for miners to focus more on transactions is closer than we think. As of today, more than 18 million BTC has been mined out anyway; after three or four more halvings, profiting exclusively from mining alone may not be worth it due to even more computation difficulty compared to today.

Scenario to increase transaction fee is on the way because PoW-based mining does not just consume the power but also time has to be spent to include transactions into the block that has only 1 MB size. Miners spent more time to find the new blocks and these notable demerits may inspire crypto community to think about the possible alternatives.  

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UPDATE: China has just intensified its crackdown on Bitcoin and other crypto miners, causing some crypto miners to halt their operations as a result.

 

Click on the link for more information.

https://www.reuters.com/world/china/crypto-miners-halt-china-business-after-beijings-crackdown-bitcoin-dives-2021-05-24/

 

As indicated in the news, the affected crypto mining companies mentioned that they will limit their operations in China. Whether or not there will be other countries in the meantime that will be willing to provide cheap energy to crypto miners AND are not hostile to cryptocurrencies itself remains to be seen. Should there be such a country, China will eventually lose its standing as a crypto mining center as the mining countries leave for new areas to continue their operations.

 

Edited by kyoukage01

 

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UPDATE: This news is not fully related to mining, but is rather part of the recent broader attempt of China to undermine cryptocurrencies in the country.

 

This time, China is blocking social media accounts that deals with cryptocurrencies to a certain extent.

https://www.reuters.com/world/china/china-blocks-several-cryptocurrency-related-social-media-accounts-amid-crackdown-2021-06-07/

 

The scary part on the article is what the professor featured in it has predicted. He said that the next logical move would be a law directly linking cryptocurrency mining and trading to criminal activities. Crypto miners may need to act sooner than expected before it is too late.

 

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I think the same way as @Whited35 because only one btc miner can't just affect the whole bubble. Yes if there were more then enough miners then surely there rate could collapse but I don't think that it's gonna happen ever. 

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On 6/18/2021 at 7:45 PM, AMAN KHAN said:

I think the same way as @Whited35 because only one btc miner can't just affect the whole bubble. Yes if there were more then enough miners then surely there rate could collapse but I don't think that it's gonna happen ever. 

Just about every crypto miners located in China today are contemplating on moving their operations out of the country, because unlike the 'flash in the pan' operations before, Chinese authorities are dead serious on their crackdown this time.

 

It is no longer one or two miners' problem with China. The whole crypto mining industry in China is now in jeopardy. And let's not forget that a majority of crypto (majorly Bitcoin) miners are located there.

 

UPDATE: China has further stepped up in their crackdown of Bitcoin and other crypto miners, and with other bad news combined, this is the end result.

Spoiler

Bitcoin wipes out 2021 gains after sinking under $30,000

By Matthew Field
22 June 2021
 
Bitcoin has wiped out all its gains from the start of the year, falling below $30,000 (£21,557) for the first time since the beginning of January as a rout of the cryptocurrency gathered pace on Tue. The digital coin lost a tenth of its value in early trading, falling as low as $28,990 to a level last touched on December 30, before recovering to be just over $32,000. Trading volumes increased 15pc and speculators went on a selling spree, according to data from Coinmarketcap. 

 

Jitters spread across other digital currencies with falls across all coins of 6.5pc. Ethereum, the second-biggest digital coin, suffered a 5.7pc decline. Simon Peters, an analyst at eToro, said: “The primary reason for the sell-off has been the crackdown in China on mining operations and banking services.”

 

Chinese regulators and its central bank have launched a sweeping crackdown against digital coin companies.

Bitcoin mining companies, which use banks of computer processors to power the calculations that run the digital coin, have been banned in the country, forcing miners to abandon their operations. China accounted for the majority of the world’s Bitcoin mining last year. 

 

The People’s Bank of China has also ordered banks to stop trading, clearing and settlement of digital coin transactions, it said on Monday. Payment apps, such as Alipay, said they would step up monitoring for illegal cryptocurrency transactions. 

 

Bitcoin has lost more than half its value since a buying frenzy sent it above $60,000 in April. The spike followed support from cryptocurrency enthusiasts such as Elon Musk, who said Tesla would use the digital coin for payments. Companies such as Uber, PayPal and Visa also said they would support cryptocurrency.

However, Mr Musk said last month that Tesla would no longer accept Bitcoin over environmental concerns about its power use and carbon footprint.

 

UK banks have also hardened their stance on cryptocurrency. TSB is planning to ban crypto purchases from sites with high rates of fraud, while Starling Bank has banned all payments to cryptocurrency exchanges.

Shares linked to digital coin prices have also suffered this week. Coinbase, the US cryptocurrency app, fell 3pc on Nasdaq on Tuesday and its shares have slumped by a third since it listed in April. 

 

Shares in London-listed Bitcoin mining company Argo Blockchain fell 2.2pc.

https://www.telegraph.co.uk/technology/2021/06/22/bitcoin-wipes-2021-gains-sinking-30000/

 

But why the 'persecution'? It can be said that it all boils down to one word - CONTROL.

As I quote:

Quote

"The Chinese Communist Party has made it known for the last several years, couple decades, that rising up to be the geopolitical superpower in the world, replacing the United States or at least being on par with the United States is their stated goal," Bhatia said.

 

"And so when you look at the wave of adoption of bitcoin and its position as a macroasset, I do believe that China wants to be a part of that ... What I've seen from articles that have come out in Chinese newspapers, for example, is that they identify bitcoin as a potential digital gold and a solid investment opportunity looking forward into the future. We have on one side, China might be embracing Bitcoin as an investment and then the other side, they want to crack down on mining, they want to make sure that illegal trading is taken out of the marketplace and that the government has control over it. So, it's really a tale of two worlds."

 

source: https://ph.news.yahoo.com/bitcoin-wipes-out-2021-gains-as-china-crackdown-continues-142206939.html

 

Edited by kyoukage01

 

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This is not possible that the china make start the rack down on crypto mining becasue in the market now at this time china make the coins so much through just mining and they earn good money through this and its true.


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On 7/13/2021 at 2:05 AM, khan22 said:

This is not possible that the china make start the rack down on crypto mining becasue in the market now at this time china make the coins so much through just mining and they earn good money through this and its true.

Sad to say that that statement is no longer true. See the update link below.

 

UPDATE: They finally did it - China recently declared cryptocurrencies illegal. In exchange, the government offer to their citizens e-CNY, a digital version of their yuan currency that can be tracked and controlled by them. I have a lot to say to this move if it wasn't for the forum rule that political comments are not allowed 😕 . Anyway, crypto mining is included among the illegal activities China is dead set to wipe out. I wonder if the major miners have already left China by this time.

 

https://www.bloomberg.com/news/articles/2021-09-24/china-deems-all-crypto-related-transactions-illegal-in-crackdown

 

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UPDATE: Bitcoin mining in China can now be declared as 'dead'.

Quote

"According to the Cambridge Centre for Alternative Finance report, China’s share of the global hashrate went down from 44% to zero between May and July."

 

source: https://coinrivet.com/us-now-worlds-biggest-bitcoin-miner-after-china-ban/

And according to the link in the quote above, the US is now the Bitcoin mining capital of the world.

 

... and that is it for the crypto mining industry in China. The focus is now on the US on whether it can hold its miners for how long. Because as some analysts know, there are some prominent politicians there who are adamantly against crypto and are planning up something to pass laws forbidding it entirely.

 

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11 hours ago, kyoukage01 said:

UPDATE: Bitcoin mining in China can now be declared as 'dead'.

And according to the link in the quote above, the US is now the Bitcoin mining capital of the world.

 

... and that is it for the crypto mining industry in China. The focus is now on the US on whether it can hold its miners for how long. Because as some analysts know, there are some prominent politicians there who are adamantly against crypto and are planning up something to pass laws forbidding it entirely.

 

How quickly things have changed in China, now you can no longer mine there. Although there used to be a world country, there were still many large miners and cheap electricity.
I hope that the United States will not follow in the footsteps of China and will allow cryptocurrencies to develop freely in this country.

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Consequently, U.S. Treasury yields and the dollar are rising, while stock indices such as the S&P 500, Dow Jones, and Nasdaq are on the decline.   Attempts by EUR/USD bulls to initiate a rebound were halted on April 18 at the 1.0690 level after Francois Villeroy de Galhau, Vice-President of the ECB and head of the Bank of France, confirmed that the European regulator would likely cut rates in June if there were no significant surprises. Even hawkish figures like Robert Holzmann, head of Austria's central bank, agreed with these dovish forecasts.   The pair closed the five-day period at 1.0656. Fundamental indicators still favour the dollar, and although a correction northward for the pair cannot be ruled out, it is unlikely to be substantial or prolonged. For the immediate future, as of the evening of April 19, 80% of experts anticipate further strengthening of the dollar, with the remaining 20% expecting a bounce upwards. Among trend indicators on D1, 90% are red, and 10% are green. All oscillators are red, though 15% of them are in the oversold zone. The nearest support for the pair is found at 1.0600-1.0620, followed by 1.0560, 1.0495-1.0515, and 1.0450, down to 1.0375, 1.0255, 1.0130, and 1.0000. Resistance zones are at 1.0680-1.0695, 1.0725, 1.0795-1.0800, up to 1.0865, 1.0895-1.0925, 1.0965-1.0980, and 1.1015, reaching up to 1.1050 and 1.1100-1.1140.   The upcoming workweek can be termed a week of preliminary data. On Tuesday, April 23, preliminary business activity data (PMI) will be released for various sectors of the economy in Germany, the Eurozone, and the USA. On Thursday, April 25, preliminary U.S. GDP figures for Q1 2024 will be released. This will be followed by the usual data on initial unemployment claims and, on April 26, data on personal consumption expenditures in the country.   GBP/USD: CPI Disappoints BoE   Last week's macroeconomic statistics from the United Kingdom were less than favourable. Unemployment unexpectedly rose to 4.2% from a forecast of 4.0%. Claims for unemployment benefits surged from 4.1K to 10.9K, although this was notably below the market's expectation of 17.2K.   The bigger surprise came from the inflation indicators released on Wednesday, April 17. General inflation (CPI) decreased from 3.4% to 3.2% year-on-year, and core inflation dropped from 4.5% to 4.2%, against a market expectation of 4.1%. The monthly CPI remained steady at 0.6%. Unexpectedly high food prices and a sharp increase in housing costs at 3.8% month-on-month contributed to the inflation surprise. Volatile items such as books and video games also saw significant price rises; book prices experienced the largest monthly increase ever recorded at 4.9%, while video games prices increased by 2.3%.   "Overall, this is not what the Bank of England (BoE) would have wanted to see," analysts at TD Securities commented. BoE Governor Andrew Bailey quickly reassured the public, stating, "We are virtually at the same inflation level as in February and I expect the data next month to show a significant drop." He also mentioned that the oil price hike had not been as steep as expected, and the impact of the Middle East conflict was less than feared.   Indeed, the price rise in airline tickets, which are significantly influenced by fuel costs, was just 0.1% month-on-month. Given the early Easter this year, this increase seems quite mild. However, BoE Monetary Policy Committee member Megan Greene expressed concerns about how energy prices and other supply shocks might affect inflation expectations in the future.   Recall that a week earlier, Megan Greene, in her column in the Financial Times, stated that inflation risks in the United Kingdom remain much higher than in the USA, and that 'markets are mistaken in their predictions regarding rate cuts [for the pound].' 'Markets have come to believe that the Fed will not start lowering rates so soon. In my view,' she wrote at the time, 'rate cuts in the United Kingdom should also not be expected anytime soon.' Following such remarks, just as with the dollar, markets anticipate no more than two rate cuts from the Bank of England this year, each by 25 basis points.   Last week, GBP/USD opened at 1.2448 and closed at 1.2370, failing to breach the key 1.2500 level. Analysts are divided on the pair's future movement: 80% foresee a further decline, while 20% predict a rebound. All D1 trend indicators and oscillators point downwards, though a third are signalling oversold conditions. If the pair falls further, support lies at 1.2330, 1.2185-1.2210, 1.2110, 1.2035-1.2070, 1.1960, and 1.1840. In case of a rise, resistance will be encountered at 1.2425, 1.2515, 1.2575-1.2610, 1.2695-1.2710, 1.2755-1.2775, 1.2800-1.2820, and 1.2885-1.2900.   The upcoming week will see the release of preliminary business activity data (PMI) for the United Kingdom almost simultaneously with Germany and the Eurozone on Tuesday, April 23. No other significant economic data from the United Kingdom is expected this week.   USD/JPY: Higher and Higher...   Last week, USD/JPY once again reached a 34-year high, peaking at 154.78. This level was last seen in 1990. According to economists at the Singapore-based United Overseas Bank (UOB), the pricing dynamics continue to suggest further strengthening of the dollar. "The upside risks remain as long as the dollar stays above 153.75, our strong support level," they wrote. "Should the price break above 155.00, focus will shift to 155.50." Meanwhile, strategists from the Dutch Rabobank believe that reaching 155.00 could significantly increase the risk of currency interventions by the Japanese Ministry of Finance to protect the yen from further weakening. According to the results of a survey published by Reuters, nearly all respondents (91%) believe that Tokyo will intervene at some point to stop further weakening of the currency. Sixteen out of twenty-one economists expect interventions in the USD/JPY at the level of 155.00. The rest predict similar actions at levels of 156.00 (2 respondents), 157.00 (1), and 158.00 (2).   Strengthening the national currency could involve tightening monetary policy by the Bank of Japan (BoJ), whose next meeting is scheduled for Friday, April 26. At its last meeting on March 19, the Japanese regulator made an unprecedented move by raising the rate from -0.1% to +0.1%, the first increase in 17 years. Asahi Noguchi, a BoJ board member, indicated that any future rate increases would likely occur at a much slower pace compared to recent tightenings by other global central banks. He noted that it would take a significant amount of time for a positive rate cycle to become firmly established, making it uncertain whether there will be another rate increase this year.   A Reuters poll showed that no economists expect a rate hike by the BoJ before the end of June. However, 21 out of 61 respondents believe that rates could be raised in the third quarter, and 17 out of 55 anticipate a fourth-quarter hike. Of a smaller sample of 36 economists, 19% think a July hike is possible, but October is the most likely time for an increase, with approximately 36% expecting it. In contrast, 31% believe the BoJ might take action in 2025 or later.   The pair closed the week at 154.63. Rabobank experts currently see the dollar being supported by demand for safe assets amid escalating Middle East tensions. A de-escalation between Israel and Iran could help temper the rise of the American currency. The median forecast surprisingly aligns with predictions for the two previously mentioned pairs: 80% of analysts expect further weakening (downward movement for this pair indicates a strengthening dollar), while 20% anticipate a rebound. All D1 trend indicators and oscillators point upwards, with 50% in the overbought zone. The nearest support level is around 154.30, with further support at 153.90, 153.50, 152.75, 151.55-151.75, 150.80-151.15, 149.70-150.00, 148.40, 147.30-147.60, and 146.50. Identifying resistance levels remains challenging after the pair's recent peaks, with the nearest resistance at 154.75-155.00, followed by 156.25. Additional benchmarks include the June 1990 monthly high around 155.80 and the April 1990 turnaround peak at 160.30.   Besides the aforementioned BoJ meeting, consumer inflation data for the Tokyo area will also be published on Friday, April 26. No other major events regarding the Japanese economy are expected next week.   CRYPTOCURRENCIES: Will China's BTC-ETF Ignite the Market?   This analysis is prepared just hours before the 'hour X': the scheduled halving on Saturday, April 20. We will detail the market's reaction to this significant event next week. Meanwhile, let's focus on the events leading up to it. In the days leading up to the halving, the leading cryptocurrency did not bring joy to investors. Starting on April 8, the price of bitcoin was on a downward trajectory. The weekly decline in BTC was the largest in the past eight months, and in dollar terms, it was the steepest since the FTX exchange collapse in November 2022. Following bitcoin, other major altcoins also plummeted, losing about a third of their value. The local minimum for BTC/USD was recorded on April 17 at around $59,640. At that moment, analyst and co-founder of venture company CMCC Crest, Willy Woo, warned that if the price of bitcoin fell below the short-term holders' support level at $58,900, the market might enter a bear phase. However, this did not occur, and the price returned to around $62,000.   Analysts at CryptoQuant believe that the recent crash was necessary to reset unrealized trader profits to zero—a typical signal of a bottom in bull markets. Willy Woo suggested that "current bearish sentiments are actually a bullish sign," and that the next level where major short liquidations would occur is between $71,000 and $75,000. Renowned trader RektCapital reassured investors, stating that a price drop before the halving is a normal trend. "There is no need to panic, as this drop has occurred in all cycles. Don’t think that it’s different this time," he emphasized.   There were, however, other theories about the recent price drop. According to one, the fall in bitcoin was helped by the escalation of conflict in the Middle East and an attack by Iran on Israel. CEO of Galaxy Digital, Mike Novogratz, speculated that bitcoin could reach a new all-time high if the conflict in that region subsided. In this context, he urged world leaders to take control of the situation to prevent a further decline in prices for all financial assets, including cryptocurrency.   In contrast, Michael Saylor, president of MicroStrategy, believes that geopolitical tension will actually benefit bitcoin, suggesting that "chaos is good for bitcoin." Logically, this makes sense: cryptocurrency was born in response to the economic crisis of 2008, making it an alternative means of capital preservation during upheavals. (Note that MicroStrategy, with 205,000 BTC on its balance sheet, is the largest public holder of bitcoin and naturally interested in its price increase.)   OpenAI's ChatGPT did not overlook the international situation either. This Artificial Intelligence believes that if the crisis between Israel and Iran intensifies, the price of the main cryptocurrency will only slightly decrease, and this will be a short-term reaction. More severe impacts would likely be on assets like stocks. Bitcoin, however, is expected to quickly recover its position. ChatGPT, like Michael Saylor, anticipates that an initial drop will be followed by a bullish rally as investors look for a safe haven, potentially driving "digital gold" to a new historical high of $75,000. If the escalation in the Middle East becomes protracted and leads to a series of smaller conflicts, ChatGPT predicts the volatility range for bitcoin could expand: with an initial fall to $55,000 followed by a surge to $80,000.   It is worth noting that the discussed drop in BTC/USD occurred against the backdrop of a noticeable strengthening of the American currency. This was not only due to the dollar's role as a safe-haven asset amid geopolitical tension but also because of a postponement in market expectations regarding the timing of the Fed's easing of monetary policy. After the inflation data published on April 10, market participants decided that the first rate cut would not happen in June but in September, causing the Dollar Index (DXY) to surge sharply. Naturally, the strengthening of one asset in a currency pair led to the weakening of the other: the principle of leverage is irrefutable.   Now, a few words about what awaits the main cryptocurrency after the halving. This year, 75% of the investment influx has been provided by the newly launched spot bitcoin ETFs in the U.S. Their combined balance now totals $12.5 billion, with the U.S. accounting for over 95% of the global inflow into exchange-traded crypto funds. The interest in ETFs has been so strong that BlackRock's fund became the fastest-growing in history.   According to CryptoQuant analysts, the reserves of bitcoin on exchanges will last only a few months at the current rates. Total available exchange reserves have decreased by more than 800,000 BTC and have reached their lowest level in the history of two-year observations. As of April 16, they stand at about 2 million BTC. Assuming a daily influx into spot BTC-ETFs of about $500 million, which at current prices equates to approximately 8,025 coins, it would take just nine months to completely deplete these reserves.   The results of calculations using the Stock-to-Flow (S2F) model, which demonstrates the relationship between an asset's usage and its reserves, show that after the halving, the bitcoin S2F coefficient will reach 112 points. This is nearly twice the S2F for gold (60 points), indicating that by January 2025, bitcoin will become a more scarce commodity than the most popular precious metal.   In such a scenario, another powerful new driver could emerge. Following the U.S., similar investment inflows into cryptocurrency could be provided by spot ETFs in China. According to insider information from Bloomberg, the SEC of Hong Kong could make a positive decision on launching such funds within the next few days. And perhaps the predictions by ARK Invest's CEO, Cathy Wood, and author Robert Kiyosaki, who expect the price of bitcoin to reach $2.3 million per coin by 2030, are not so far from the truth.   As of the evening of Friday, April 19, BTC/USD is trading around $64,150. The total market capitalization of the crypto market stands at $2.32 trillion, down from $2.44 trillion a week ago. The Crypto Fear & Greed Index has dropped from 79 to 66 points, moving from the Extreme Greed zone to the Greed zone.   Finally, a bit of intriguing information for collectors. As it has been revealed, miners have begun active preparations for the "hunt" for the first "epic" satoshi to be mined after the current halving. Whoever mines it might receive a substantial sum, as the estimated value of this "collectible" digital coin could be several tens of millions of dollars. About two years ago, Casey Rodarmor, creator of the Ordinals protocol on the blockchain of the first cryptocurrency, developed a system for classifying the rarity of individual sats. With the launch of "inscriptions," it became possible to number and sell fractions of bitcoin similar to non-fungible tokens (NFTs).   Rodarmor's scale varies from the first "unusual" satoshi in each block to the "mythical" – the very first in the history of the blockchain. One of the highest degrees of rarity is the "epic" sat, mined in the first block after each halving. It is possible that collectors might value such an asset even at $50 million. (Remember that a satoshi is one hundred millionth of a bitcoin (0.00000001), and at the current BTC price, the price of a regular, non-collectible sat is just $0.00064). NordFX Analytical Group   Notice: These materials are not investment recommendations or guidelines for working in financial markets and are intended for informational purposes only. Trading in financial markets is risky and can result in a complete loss of deposited funds.   #eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market   https://nordfx.com/ 
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    • Наступило еще одно сокращение награды биткойнов вдвое, четвертое на данный момент, и оно не было похоже ни на одно другое до него, причем институциональные инвестиции впервые сыграли ключевую роль. Уполовинивание биткойнов исторически было связано с одним существенным сходством — последующим скачком цены BTC , который часто происходит через некоторое время после халвинга. Хотя сообществу еще предстоит выяснить, пойдет ли четвертое халвинг по тому же пути, кое-что уже изменилось в халвинге Биткойна в 2024 году. База пользователей криптовалют выросла как минимум на 400% с момента сокращения вдвое в 2020 году Хотя скорость генерации новых биткойнов снизилась со времени первого халвинга, спрос не остался на месте. По данным различных источников , с момента предыдущего сокращения биткойнов вдвое, которое произошло в мае 2020 года , глобальная база пользователей криптовалюты увеличилась как минимум на 400 миллионов пользователей. По оценкам Кембриджского центра альтернативных финансов (CCAF), в 2020 году число владельцев криптовалют во всем мире составило около 100 миллионов пользователей . По оценкам криптобиржи Crypto.com, к концу 2023 года число пользователей криптовалюты в мире выросло до 580 миллионов человек . Глобальные пользователи криптовалюты с января 2023 г. по декабрь 2023 г. Источник. Крипто.com Несмотря на то, что Биткойн является крупнейшей в мире криптовалютой по рыночной капитализации и самой старой, у него, очевидно, меньше пользователей, чем у всей криптоэкосистемы. По данным Technopedia, по состоянию на 2024 год около 2,7% мирового населения будут владеть биткойнами, что составляет около 219 миллионов  человек. Если верить данным, то, согласно расчетам Crypto.com, эта цифра выросла примерно на 208% по сравнению с 71 миллионом пользователей Биткойна четыре года назад. В случае с Биткойном или большинством других криптовалют оценка большинства пользователей не может быть на 100% точной, поскольку анализ транзакций в блокчейне часто неспособен отличить долгосрочных держателей от потерянных BTC, а также других факторов. Ралли биткойнов перед сокращением вдвое в 2024 году еще не наблюдалось Одно из самых больших различий между четвертым сокращением биткойна и тремя предыдущими  заключается в том, что перед сокращением в 2024 году цена продемонстрировала необычайный рост. В предыдущих циклах цена Биткойна регистрировала снижения перед халвингом, а новые исторические максимумы были достигнуты примерно через год после даты сокращения награды ха блок. Например, биткойн не поднялся выше ранее установленного ATH в 20 000 долларов до халвинга в 2020 году. В этом цикле цена Биткойна превысила ATH только через 10 месяцев после сокращения вдвое. На этот раз картина совсем иная. В текущем цикле Биткойн достиг рекордного максимума прямо перед событием халвинга, установив рекорд в 73 600 долларов 13 марта 2024 года. Такого прорыва никогда раньше не наблюдалось, и с этим согласны многие аналитики, в том числе криптоаналитик eToro Саймон Питерс. На этот раз майнеры «лучше подготовлены» к халвингу Невиданное ранее повышение цен на биткойны перед сокращением вдвое потенциально оказало положительное влияние на майеинговую отрасль, поскольку майнеры получили больший контроль над затратами на добычу биткойна. «По сравнению с предыдущим сокращением вдвое, похоже, что майнеры в целом находятся в лучшей форме с точки зрения более низкого уровня долга и потенциально лучшего контроля над своими расходами, такими как электричество», — сказал директор по исследованиям Fidelity Digital Assets Крис Койпер, добавив: «Что также помогает майнерам в этом цикле, так это повышение цен перед  сокращением вдвое — то, чего также не наблюдалось в предыдущих циклах». С момента третьего сокращения вдвое в мае 2020 года потребление энергии при майнинге биткойнов значительно возросло, увеличившись примерно с 50 тераватт-часов (Twh) до 99 Twh 18 апреля 2024 года. Энергопотребление биткойнов. Источник: Дигикономист В то же время объем потребления энергии в сети Биткойн, основанной на возобновляемых источниках энергии, также увеличился: по данным Bitcoin ESG Forecast, на долю возобновляемых источников энергии приходилось 54,5% потребления майнинга BTC по состоянию на январь 2024 года. По данным CCAF, по состоянию на сентябрь 2020 года этот показатель составлял 39%. Первое сокращение биткойнов вдвое с помощью спотовых BTC ETF в США Одна из самых простых особенностей сокращения биткойнов в два раза в 2024  году заключается в том, что это сокращение вдвое станет первым в истории, когда биржевые фонды BTC (ETF) включены в Соединенные Штаты. После многих лет усилий спотовые биткойн-ETF дебютировали в январе 2024 года, открыв доступ к биткойнам для институциональных инвесторов.   По словам аналитика Bloomberg ETF Эрика Балчунаса, спотовые биткойн-ETF добились «ошеломляющего успеха», что, очевидно, отражает всплеск спроса на биткойн.
    • 20.04.2024 Тарифы Kingex 👑   Покупка криптовалюты / Buying cryptocurrency:   BTC/ETH  +1.7% (Мы доплачиваем) USDT  +1.7% (Мы доплачиваем)   ^^SALE^^ от 50k    + 1.9%    Продажа криптовалюты / Selling cryptocurrency:   BTC/ETH  - по запросу USDT   - по запросу   Оператор: @Kingex Сайт: Kingex.io Курс на протяжении дня может меняться! ------------------------ Будьте ОСТОРОЖНЫ, появились фейки! Наш телеграм: @Kingex
    • точно не зна, насчет 1го, но во втором стандартные долбанутые а ля erc20 комиссии   кстати, с наступившим !   можно халвы купить в 5ерочке отпраздновать   и тончик снова припал
    • Представители Федерального бюро расследований предупреждают общественность о распространении программы-вымогателя Akira. Согласно заявлению ФБР , программа-вымогатель Akira Bitcoin ( BTC ) нанесла многомиллионные убытки различным компаниям и организациям в Северной Америке, Европе и Австралии. Вредоносное ПО получает доступ к инфраструктуре предприятия через VPN, получая доступ к программному обеспечению без многофакторной аутентификации. Затем Акира крадет конфиденциальные данные и важную информацию, блокируя доступ к системе. Далее на экране отображается сообщение с требованием выкупа. Хакеры используют биткойн в качестве способа оплаты.   В результате распространения программы-вымогателя неизвестные мошенники завладели более чем $42 млн, затронув более 250 компаний. Первоначально хакеры атаковали компьютерные системы на базе Windows, но позже следователи выявили и Linux-версию Akira. ФБР совместно с Агентством кибербезопасности и безопасности инфраструктуры (CISA), Европейским центром по киберпреступности Европола (EC3) и Национальным центром кибербезопасности Нидерландов (NCSC-NL) выпустило специальное предупреждение. Ранее ФБР опубликовало отчет о мошенничестве с инвестициями в криптовалюту. По данным агентства, в 2023 году этот показатель увеличился на 53% до $3,94 млрд. Как пояснили в ФБР, большая часть афер была связана с обещанием высоких прибылей от инвестиций в цифровые активы и составляет 86% всех потерь от инвестиционного мошенничества. В Соединенных Штатах.
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