It’s been 150 days since China banned Bitcoin (BTC) mining, and as a result, BTC price action has only been beneficial.
Five months ago, China caused quite a stir, but not an unexpected one, and only doubled down on its hostility to cryptocurrencies.
Bitcoin to China: Thank You for Ban
Like all previous bans, China’s actions against miners have led to temporary price swings compared to the biggest physical shocks in Bitcoin’s history.
When miners went offline and left China, the Bitcoin network’s hash rate dropped by 50%, and struggled to accommodate the changes in the following months.
Since then, there has been a sharp rebound, and now the network and its security have virtually wiped out the traces of Chinese influence. At the same time, the Bitcoin price action is showing a more pronounced trend.
Analyst Willy Wu sums up the episode: “China has banned bitcoin trading and mining just 150 days ago.”
“Today, the network is more decentralized than ever, and the price has gone up by 50%. Antifragil.”
As Cointelegraph reports, Beijing’s moves toward bitcoin have ironically led to price increases, not declines, and 2021 was no exception.
Hash speed data also shows how the absence of China has improved decentralization, eliminating the weakness that has characterized mining over the years.
Bitcoin hash velocity distribution graph. Source: CBECI.
Wu saw the potential benefits of a mining ban even before BTC/USD started to recover, ironically describing China’s actions as “selfless.”
Meanwhile, the United States is currently the largest contributor to the Bitcoin network hash.
Hodl miners after China
The miners’ current behavior underscores the long-term perspective taken by network participants after China’s exit.
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The influx of miners remains low, despite the fact that the price of BTC is near record levels, and their reserves are close to historical deflationary periods, according to data from the analysis firm CryptoQuant.
Bitcoin metal graph. Source: CryptoQuant
Long-term miners and farmers are refusing to sell at current levels in anticipation of new highs and an increase to $300,000 per BTC/USD.