Cryptocurrency news about Bitcoin – Price movement to heights
Latest cryptocurrency news about Bitcoin show that interest in Bitcoin is climbing along with price. While at the end of September, the most famous cryptocurrency in the world was hovering around the $40,000 mark, in October, it strengthened by more than $15,000. Gradually, it climbs to the record odds from April this year. Ethereum also strengthened significantly.
From $40,000 in September, Bitcoin jumped to $55,735 on Wednesday night. The value fell slightly on Thursday. But the exchange rate of $54,673 is still among the highest values for the whole of last month.
So far, the absolute record for Bitcoin was set at $64,829 in April. However, it is worth recalling that the limit of $30,000 was exceeded only at the turn of last year. Earlier this year, the most famous cryptocurrency in the world had an even lower value.
Ethereum has also strengthened
Cryptocurrency news about other cryptocurrencies also show the significant jump as Bitcoin. For example, Ethereum was still trading at $2,786 at the end of September, and was already $3,628 on Thursday. Ethereum set an absolute record in early May when the exchange rate was $4,382.
It is necessary to emphasize that virtual currencies do not have a single price. They trade on stock exchanges and exchange offices depending on volatility.
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Why did China decided to cut Bitcoin for good?
China has certainly not spared Bitcoin in recent months. After Beijing beat the miners out of the country, authorities announced that they were beginning to consider all cryptocurrency operations illegal and threatened severe punishment to anyone who ignored the new order.
Cryptocurrency News – Bitcoin in China has fallen
China has long been a paradise for miners of Bitcoin and other cryptocurrencies. Probably the largest concentration of mining equipment was in Inner Mongolia, known for its very cheap electricity. However, China is now going through an energy crisis. Combined with the country’s ambitious plan to become carbon neutral by 2050, it has made cryptocurrency mining a dirty business for which there is no place behind the Great Wall of China.
In 2009, China accounted for 75% of the energy consumed worldwide by Bitcoin mining. In the spring of 2021, the share fell below 50%, and new numbers should confirm another sharp decline. It is estimated that more than 90% of the former total mining capacity has already ended in China.
However, the most frequently mentioned source of Beijing’s hatred of cryptocurrencies is the government’s efforts to gain more control over the economy. If Bitcoin boasted that it was decentralized and independent of the authorities and even claimed that the transactions it made were untraceable, it overshot China. Add to that the country’s plan to create a “competition” in the form of a digital yuan. This would be a deadly combination in the world.
Correlation
But to make matters worse, there is also another problem. Its name is correlation. Until recently, the bitcoin course, saddled only by IT enthusiasts, was evolving as it had been. After all, this has become one of the arguments why investments in it should also be considered by traditional investors. For them, the purchase of a gold bar was the most exciting until then.
Now, the direction of the bitcoin exchange rate goes mainly by stock price developments. But what if the roles were reversed? Undoubtedly, the Chinese central bank had long since calculated that the little innovation for the risk of stock market disruption due to the spill of a possible panic from the cryptocurrency trough is not worth it. If you follow latest cryptocurrency news, you already know about how bad the situation with crypto in China is.
There are undoubtedly countless reasons why China is saying goodbye to Bitcoin. And no one can refuse, on every splash of truth, a little. But one thing is sure, and everything wrong is good for something. Investors can now be confident that they will no longer hit another pole in the back of the cryptocurrencies.
