A few months ago, the cryptocurrency industry was shocked by the news that miners and crypto trading signals developers had begun a massive exodus from China. It became known that at the end of May 2021, the Chinese authorities will ban Bitcoin mining (BTC), bringing the already existing regulatory pressure on miners to the limit.
The share of bitcoin mining in China fell by 55%
The People's Bank of China held extensive consultations with banks and payment systems, and then told the largest Chinese financial institutions to stop trading, in particular Bitcoin (BTC). As a result, the Bitcoin hash rate has shown one of the biggest drops in its history.
China's share of BTC mining has dropped 55% since the beginning of the year as many members of the Bitcoin network shut down their hardware – expert of SafeTrading.
- This led to the flooding of the used car market in China with graphics cards.
- Miners began to actively sell cards at below market prices, including the very powerful GeForce RTX 3090 and Radeon RX 6900 XT.
- Of course, not all miners have succumbed to this pressure.
The most logical way out of the situation was the “migration of minerals” to other countries. So where have the Chinese miners moved to and which countries could become the new mining hub?
Where are the new mining centers?
Over the years, the US has steadily increased its capacity since the ban was introduced in China, even though the cryptocurrency market has experienced a sharp downturn. American mining companies have always managed to stay active for a long period of time, especially when demand was very low and crypto trading signals were not so popular. In addition, the United States has some of the cheapest energy sources, most of which are renewable.
In addition, some American investors are also interested in working with miners. US oil and gas executives at a recent meeting in Texas suggested that miners use surplus natural gas to generate electricity. Cheap electricity is also of great interest to major mining equipment manufacturers.
- For example, in 2020, Bitmain will partner with Foundry, a subsidiary of the Digital Currency Group that provides funding to Bitmain clients in North America and North America, and has signed a partnership agreement that provides a large number of BTC mining devices.
Kazakhstan has also shown strong growth this year, increasing its share of the Bitcoin mining ecosystem from 1.4% to 8.6%. Since the country shares a border with China, the cost of transporting the equipment is cheaper than transporting it across the ocean to North America. In addition, lawmakers in Kazakhstan are allowing local banks to open accounts for cryptocurrency transactions, making the country more attractive to miners.
A large cryptocurrency mining company Canaan launched bitcoin in Kazakhstan in June, announcing the start of mining. According to experts of SafeTrading, Chinese miners have sent about 4,000 mining devices to Kazakhstan. Another reason Kazakhstan is accessible to miners is the extremely low electricity prices: 1 kilowatt costs $ 0.03. However, the country's energy system is not as large as that of the United States.
Russia also increased its share in world production to 6.5%. Like Kazakhstan, Russia shares a border with China, making it easier to transport mining equipment. In July 2021, the Russian Association of Cryptoindustry and Blockchains outlined the advantages of mining in the country and highlighted the surplus of cheap electricity.
Given the country's climatic diversity, mining centers can be established in colder climates to maximize expected profits while reducing cooling costs. In addition, RACIB signed a partnership agreement with a consortium of China's largest mining companies, which until recently controlled 25% of the bitcoin hashrate.
Less than six months after the Chinese ban, miners have found a new home, arguably better than before, and this allows Bitcoin's hashrate to recover predictably. So the Chinese miners are not going anywhere, they will simply change their position – analyst of SafeTrading.
The Avalanche price sets a new ATH
The popular cryptocurrency Avalanche (AVAX) has started a new bullish wave today. Avalanche (AVAX) has broken the previous all-time high of $ 60 and continues to rise.
Avalanche (AVAX) and the new ATH
Avalanche's proprietary cryptocurrency AVAX, the platform that provides the infrastructure needed to run decentralized finance (DeFi) applications, financial assets, trading and other services, has exploded and has defined a new ATH.
Analysts expect AVAX to continue to rally throughout the day and remain the most profitable asset of the day.
The cryptocurrency market as a whole has been showing stable performance over the past 24 hours. Market Leaders Bitcoin is up 0.45% in the past 24 hours, while the leading altcoin Ethereum is up more than%. On the other hand, Avalanche (AVAX) was the most efficient cryptocurrency with gains of over 25 percent.
AVAX has traded in a range of $ 48.35 to $ 64.87 in the past 24 hours. This indicates significant volatility in the AVAX price. In addition, market size increased 6.4 percent in the last 24 hours to $ 3,048 billion, ranking 13th with a market capitalization of $ 13.8 billion.
Will AVAX continue to grow?
- Looking at the 4 hour chart, we can see that the price of Avalanche continues to rise since it exceeded $ 60 this morning. This month's avalanche price movement has shown significant volatility. AVAX, which traded at $ 40-50 at the end of August, fell to $ 33 on September 7 and fell sharply.
- However, the AVAX / USD pair quickly rebounded from the $ 33 support level and reclaimed the previous record high of $ 52. Reaching $ 60 a night, AVAX set its highest level at $ 64.80, rising above the $ 60 level to date.
Earlier this morning, the uptrend continued above $ 60 as it gained momentum. This was followed by a move to a new all-time high of $ 64.80. As long as AVAX maintains its bullish momentum, it could hit $ 70 as its next target in the next 24 hours.
After a strong rally in the past 24 hours, analysis shows that the AVAX price will continue to rise as it hit a record high of $ 64.80 this morning. Thus, even greater upside potential is expected today, and the next target is $ 70.