The fall in the Bitcoin exchange rate affects not only investors and speculators, but also companies engaged in the production of mining equipment.
Today, the company Bitmain Technologies Ltd. suspended sales of its mining solutions around the world, seeking to support prices after crypto-miners, fleeing from the repression in Beijing, threw out used mining rigs on the market.
The world's largest manufacturer of Bitcoin machines has told the local mining community that it has stopped selling new equipment after prices for high-end installations fell by about 75% since April. Delaying sales could help miners leaving the industry get better prices for mining machines that they previously used. But Bitmain, of course, does not think only about miners. The termination of new deliveries will allow for some time to support the prices of new equipment that remained on the market.
Bitcoin's problems began in May when the Chinese government called for a renewed crackdown on Bitcoin trading and mining. Local authorities in many Chinese cities have begun an active fight against Bitcoin. The ban on Bitcoin mining forces large miners to abandon their operations, which leads to turmoil in the cryptocurrency market, which is barely breathing after the May fall. In recent weeks, due to failures, the hash rate of the bitcoin network has fallen sharply. This suggests that the enthusiasm for digital assets is beginning to fade.
The latest news that major Chinese banks and financial institutions, including Alipay, are prohibited from dealing with cryptocurrencies from providing access to trading to exchanges and transfers, also does not please institutional investors who remain in the market.
As for the technical picture of Bitcoin, the next test of the $30,100 level was very difficult and stressful for buyers of the cryptocurrency. However, the bulls managed to keep this level under control and quickly returned the trading instrument higher. Now Bitcoin is aimed at the resistance of $36,300, and getting above which it is simply vital. Only in this case, the bulls will exhale a little, and the tension in the market will subside. If this is not possible in the near future, then the next return and test of the support of $30,100 will be a sad ending for those who gained positions in the corridor of $30,100 – $41,100. A break of $30,100 will quickly push BTC lower –to the lows of $25,800 and $21,700, which will lead to the departure from the market of another number of large investors who still somehow believe in the growth of cryptocurrencies. A return to the level of $21,700 will actually cover all the rapid growth of the trading instrument, which we observed in the first half of the year.
But while everyone puts an end to the industry, the largest cryptocurrency exchanges continue their growth and development. As it became known today, Coinbase is now registered as a cryptocurrency exchange to operate in Japan. The Japanese financial regulator has approved Coinbase to trade five cryptocurrencies. In a statement, Japan's top financial regulator said that Coinbase's application as a cryptocurrency exchange service provider has been approved. According to the FSA, it is allowed to use BTC, BCH, ETH, XLM, and LTC for trading. The approved entity is a Japanese subsidiary of Coinbase Global, listed on the Nasdaq exchange.
