Market expects 'boredom' in bitcoin after small reaction to China's latest snub
By Noemí Jansana
Date: Wednesday 07 Jul 2021
(Sharecast News) - Bitcoin holds the rate this Wednesday, after China's latest regulatory bid against 'crypto' companies, and maintains the consolidation mode that it does not seem to want to abandon since the beginning of July. The announcement of the closure of a software company in Beijing for covertly engaging in cryptocurrency trading caused mild swings on Tuesday in the price of the most traded of digital currencies, which were not enough to make it leave the range between 33,000 and 36,000 dollars that he has been drawing in recent days.
"Overly optimistic expectations for bitcoin have quickly faded," says Oanda analyst Edward Moya, "as investors anticipate a period of boredom." The movement of the People's Bank of China, which threw the shutter of Beijing Qudao Cultural Development Co Ltd and took the opportunity to reiterate its persecution of this type of assets by recalling that Beijing companies should not offer premises, commercial samples or advertising for businesses related to cryptocurrency, joins a long list of stocks and does not surprise investors.
In parallel, mining activity is leaving China, which opens a period of adjustment for this sector that will translate into "trading in range for an extended period of time," says the Oanda analyst. In the long term, however, the bulls welcome the ban of cryptocurrency activity in China, as it will lead to a decentralization of mining activity. "China's crackdown is intensifying and that's why Bitcoin's hash rate, meaning how difficult it is to mine, has recently suffered the biggest drop on record," says Moya.
All in all, bitcoin is in a difficult period after Wall Street has turned slightly bearish for the rest of the year. Currently, "the largest cryptocurrency in the world is once again trading near the lower limits of its trading range of $ 30,000 to $ 41,000, in force since mid-May," says the expert.
All in all, analysts also point to the unlocking of Grayscale Bitcoin Trust (GBTC) shares as a short-term market catalyst. In the coming days, the blockade of these securities, which had been active for six months, will be lifted, which will allow investors to sell their securities on the secondary market. A movement of 40,000 bitcoins is expected.
THE 'LONDON' UPDATE OF ETHEREUM, IN AUGUST
In the rest of the crypto market, the outlook presents a mixed sign, with slight increases for ethereum and binance. The total capitalization of cryptocurrencies does not reconquer the 1.5 trillion level either - it remains slightly below - while operators prepare for the 'London' update of the Ethereum network, known as the 'hard fork'. ) in the jargon of the market.
This improvement is likely to be launched on August 4, with a block of 12,965,000. Many Ethereum enthusiasts welcome the launch delay, originally planned for July, while some view it with "cautious optimism."
As part of a roadmap designed to lead to the launch of Ethereum 2.0, which will replace Ethereum's current proof-of-work protocol with proof-of-stake, the London 'hard fork' has been rolled out across various testnets. Following the successful activation of the Ropsten and Goerli networks, the final launch date of the hard fork was decided.
Translated by Caoimhe Toman
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