Bitcoin’s price has dipped by 17% in the last seven days – is it time to buy the dip?
As China’s mining crackdown rolls out across the country, Bitcoin has seen a reduction in its mining rates.
Although there have been crackdowns in China in the past, this time there has been footage shown of miners boxing up their mining rigs and switching off their servers – an acknowledgement that this time the crackdown is serious.
China has cited some of the environmental concerns surrounding Bitcoin as one of its reasons for the crackdown, with the Asian superpower looking to reduce its emissions to zero by 2060.
This will undoubtedly cause significant disruption to the Bitcoin network, however some have claimed that Chinese miners will likely move to set up shop in a more friendly jurisdiction.
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What makes Bitcoin a good buy?
Bitcoin’s price at the time of writing is around $32,000 with trading volume of $44,878,916,855 in the last 24 hours.
Although still in its current ranging pattern between $30,000 and $40,000, this latest bearish news from China’s mining crackdown could cause short term price decline in Bitcoin, which may present buying opportunities for the leading cryptocurrency.
A step down to $25,000 could see us return to the previously held all time highs found around $17,000 at the peak of the last bull market in 2017/2018, which allow for even cheaper prices to buy Bitcoin.