An alert came out saying Ethereum and Bitcoin prices are in danger. China has continued banning cryptocurrency and activities associated with it, which led to thousands of Chinese miners being decommissioned.
Furthermore, China is reportedly dumping GPUs, implying that their mining capacity has ended--a situation that could lead to all crypto prices dropping to dangerous levels.
Months earlier, China took serious action against its local cryptocurrency miners. A "crackdown" was declared, and China blocked all internet access against major cryptocurrency exchanges. Chinese users on Houbi and Binance were discretely required to use location-masking VPN to continue access in their service
The crackdown ended up a success. Bitcoin and Ethereum miners in China were forced to stop. Now, Forbes reported that these miners have been dumping GPUs, suggesting that the Chinese crypto market won't return.
In reflection, crypto prices for Ethereum and Bitcoin have taken a drop.
ETH Value in 'Danger'
At the time of writing, Coindesk said that ETH is priced at $2,002.4 while Bitcoin is at $32,966.6
Ethereum took a network hash rate drop of 20 percent compared to its May performance. On May 12, ETH peaked at $4,132.7. However, these last few days reflect a struggle to hold on to the $2,000 price mark.
Bitcoin shares the same pattern. In May, Bitcoin peaked at $58,788.2. Unfortunately, recent weeks showed that Bitcoin barely maintained its $30,000 price level.
China Crypto Ban Continues
Notebook Check reported that Chinese crypto miners are getting rid of their GPUs. NVIDIA RTX 3060 cards, one of the hardest GPU to find during the global chip shortage, are found in abundance and sold in bargains like Alibaba, AliExpress, Taobao and Bangood,
NVIDIA RTX 3060 retails at $329. The initial dumping price for these GPUs sell at $450. However, since the China ban against cryptocurrency continues, an influx of new sellers brought the offer down to $270.
The report also said that some miners resort to selling their computer rig as a whole. Laptops featuring RTX 3060 mobile GPUs are sold at $1,000 or less.
Ethereum Price Prediction
Experts and analysts worry that the crypto market is entering a "calm before the storm." Since the market is heavily affected by recent changes, Bitcoin falling under a $30,000 value might trigger a new wave of investor liquidation. Panic buying and selling could create a storm that disrupts the market balance.
The recent events can trigger a phenomenon called "Crypto winter." WSJ described it is a cycle with sell-off spikes later followed by long periods of flat trading. The market would use the "crypto winter" to repair balance and its market nature.
Entering the cryptocurrency market, even from big industries like Bitcoin and Ethereum, presents significant danger. Since Chinese crypto markets are seemingly permanently closed, cryptocurrency markets might take a while to recover.
However, analysts from Bloomberg Technology said this is "Fantastic News." China took serious precautions against cryptocurrency since the industry is getting "stronger." Lastly, the analyst says that "US markets are safe" against the ban method used for cryptos.
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