Analysts are betting on a considerable drop in Bitcoin prices this week. Under pressure from China’s new policy that is aimed at cracking down on Bitcoin mining, miners have started dumping GPUs. The news has spread like wildfire across the miners’ communities and it would not be surprising if we see a downward trend and leading tokens losing value.
China has been the hub of Bitcoin mining and has been reportedly supporting over 70% of mining activities globally. However, that changed in May when China decided to take a u-turn. Today, mining is penalized and power companies are abandoning their miner clients. Also, the banks and financial groups have shunned crypto payments.
All of it has been taking a toll on the price of the leading currency. And, when Bitcoin’s down other major cryptocurrencies mirror the trend. The latest images coming from China reveal miners dumping their GPUs and mining equipment has further triggered “pull” sentiments. Investors may try to disinvest. It could lead to a downward trend this week.
AT the time of writing the prices of leading tokens have not demonstrated much movement in the past 24 hours. While Ethereum’s ETH tokens are struggling to hold above the $2000 mark, Bitcoin is rallying between $33-$35000.