Bitcoin Unsure About Direction And China Cracks Down On Miners

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Bitcoin is still unsure about where to go next and remains idly stuck within a tight trading range. Elsewhere, the Beijing government looks set to make life difficult for Bitcoin miners while the Fed’s Jay Powell is now presiding over the biggest balance sheet ever. Keep on printing that sweet sweet fiat.

Bitcoin chugs along

Several analysts note their insecurity as to Bitcoin’s next move. Wolf of all Streets’ Scott Melker noted that he sees declining volume as Bitcoin keeps trading within a tight range of $30k and $40k.

$btc#bitcoin

It must break the trending this time.
40k is really near. pic.twitter.com/eDDCx7RuIR

— learner trader (@jsp_in) June 13, 2021

Although we will admit that’s a long way off the April highs of $60k, it also means that the trading range is still the highest in years. A breakout above $40k and a daily close of that level would confirm a move up.

China cracks down on miners

Chinese President Xi Jinping seems to have fallen prey to the ESG crowd. He ordered the Beijing government to crack down on Bitcoin miners that use fossil fuel energy and by now, the result has been a closure of Bitcoin mining operation in Inner Mongolia and Xinjiang. By now, the province of Yunnan can be added to that.

Despite Yunnan being 90% hydro, China has placed a blanket ban on #bitcoin and #cryptocurrency mining on the entire province.

For China, this isn’t about ESG.

— Kevin Zhang (@SinoCrypto) June 12, 2021

Yes, Yunnan is the latest region where the crackdown was noticed, and an official Chinese news outlet there showed a press release stating that:

By the end of June, all bitcoin mining operations must be scrutinized and cleaned up. Any operation that uses electricity without permission must be stopped.

It will be interesting to see which country takes over the hash power as China weakens its Bitcoin mining operations.

FED keeps printing

The image of Jay Powell at a giant printing machine is one that crypto analysts love to watch in order to make fun of fiat money. Hearing about the latest balance sheet of the fed, they might be right.

In order to subsidize the US economy, Jay Powell has been obliged to buy US Treasury bonds and mortgage bonds at some $120 billion a month

Until substantial further progress has been made toward the committee’s maximum employment and price stability goals.

The Fed’s balance sheet now exceeds $8 trillion, doubling since March 2020https://t.co/mX8vLnMvbE

— Fintwit (@fintwit_news) June 11, 2021

With the US’ latest inflation figures coming it at 5%, that is apparently not working, which means the Fed has got to continue buying or let the economy decline. The FED seems convinced, just as the ECB, that the rising inflation (which brings rising prices of goods), is only temporary and that prices will stabilize. Until it does however, it’s gotta keep buying bonds and in order to do that printing fiat.

By now, Powell overlooks a balance sheet of 8 trillion dollars, the highest it has ever held.

grejak / Depositphotos.com