What Happened to Bitcoin During the Final Week of June?
Scroll DownJune 2021 will go down in market history as having been one of the most challenging for traders. Although the correction and subsequent bear market period for Bitcoin was not as extreme as it has previously been in the past, there were other peripheral news stories that impacted the rest of the cryptocurrency markets.
The final week of June brought about some very concerning news about what the future may look like when some cryptocurrencies become legal tender while central bank start minting digital versions of their fiat money. We are sure that there will be far more regulation and scrutiny, and we can already see that things are bound to get very strict.
As Americans prepared to enjoy their first Fourth of July holiday weekend after the worst months of the coronavirus pandemic, things were looking easier for Bitcoin miners. The mining difficulty of the hash rate has been reduced by almost 30%, and this can be directly attributed to China's crackdown on Bitcoin mining operations within its borders.
China did not just cut Bitcoin mining equipment, but also banned cryptocurrency exchanges in the country. If the crackdown is anything to go by, people who don't want to play by the new rules may end up leaving the country and getting into Bitcoin mining rather than putting up with the government's rule. Although some cryptocurrency exchanges that did sell out and return to normal operations are still available, it seems that all will go over soon for them.
Over the Independence Day weekend, a group attempted to launch a Bitcoin mining pool in order to run a "fair competition" for new BTC miners in the coming weeks. The hash rate of a successful block by this pool, which includes a total of 886.9 million, can be easily reached within 45 minutes. As if this wasn't enough, this group has since decided to offer a reward of 30 satoshi for every block of.
This particular event is not the only reason as to why Bitcoin is experiencing such a tumultuous time. A variety of factors are affecting the Bitcoin value worldwide. A number of factors, both internal and external, are causing the value to remain relatively stable, and as is the case with many technological trends, these factors can have quite drastic effects on how the Bitcoin economy functions.
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