Amidst Bitcoin’s (BTC) recent resurgence, notably hitting a new all-time high of over $65,000, rumors floated around that China regrets its decision to pull out from the crypto mining scene and ban cryptocurrencies. Should China perform such a move, several industry experts claim that it could spark yet another massive price rally for every cryptocurrency.
China’s well-documented crackdown on cryptocurrencies, which the country believes is draining its energy sources to a crawl, preceded one of the most significant crashes in the history of BTC. China’s BTC mining ban essentially sliced the crypto’s global price value to less than a half – from about $64,000 to just $30,000 – with many believing that the crypto would need several years to recover. Little did they know BTC would only need a few months to come back to where it originally was before China’s bans.
Bitcoin’s resurgence to above the $60,000 mark is mainly credited to the mass exodus of crypto miners out of China, which, at one point, was responsible for more than 50% of the total BTC hashrate worldwide, and other positive developments, such as El Salvador’s move to render BTC as legal tender. However, despite seemingly all signals pointing to China reversing its decision, those familiar with how the Chinese government operates believe that such rumors are but a product of misunderstanding.
According to them, this rumor likely came into the picture for two reasons. One is China’s National Development and Reform Commission’s October 21st announcement to add virtual currency mining to its list of removed industries. The other is the published news that the United States has officially overtaken China as the largest BTC mining destination today. While China is well-known for its competitiveness, many believe that it is still unlikely that the country would reverse its ruling on crypto mining and cryptos for the two reasons mentioned above.
One thing is for sure, however. China currently sees BTC mining as a highly polluting practice and, thus, goes against the country’s push for carbon neutrality. With that being said, China’s exit on the industry it has once dominated is basically already a foregone conclusion, and it would probably be that way for the foreseeable future despite the rumors.