China's crackdown on bitcoin mining earlier this year preceded one of the most devastating price crashes in cryptocurrency history.
From an all-time high above $ 64.000, BTC has dropped to one quotation less than $ 30.000 within a few weeks.
A mass migration to the United States, combined with other positive news such as El Salvador's bitcoin law, ultimately triggered a record recovery, and now speculation that China may reverse its decision has led experts to update the reports. their predictions. Should such a move occur, some argue it could provide the catalyst for another massive price rally.
The decision will be made at the end of November
China's National Development and Reform Commission (NDRC) announced last week that it is seeking public feedback on its decision to include bitcoin mining on its list of "discontinued" industries, with some claiming that it's a reaction to the cryptocurrency sky - skyrocketing price and the new US dominance in space.
This public comment period will last until November 21, at which time the country's macroeconomic planning agency will evaluate the feedback and make a decision on its position in the future.
"Lifting the ban on bitcoin mining in China would be great news for the crypto space," Nick Spanos, co-founder of Zap Protocol and one of the early bitcoin pioneers, told The Independent. "It would almost certainly be a significant catalyst for the price of bitcoin and for the cryptocurrency market as a whole."
In which direction will China go?
While pro-crypto publications like Coin Telegraph have described the news as promising, claiming the NDRC could reverse the Chinese authorities' negative stance towards bitcoin, more mainstream outlets in the region have warned it could actually make matters worse. The South China Morning Post described the action as potentially a signal "the final nail in the coffin of cryptocurrency mining in China".
Cryptocurrency mining was banned by the agency in September, along with the People's Bank of China ban on blocking cryptocurrency trading and financing. These services were already inaccessible to Chinese residents and, as of July, data from the Cambridge Bitcoin Electricity Consumption Index (CBECI) shows that mining in China had already effectively dropped to zero.
This means that there are no further moves China can take to further strengthen its stance against bitcoin, with some analysts suggesting that any news from China now can only go in one direction. Ultimately, China's decision to remove itself from the crypto space means it no longer has a significant impact on market movements.
