The chief Bloomberg expert on commodities believes current Bitcoin (BTC) headwinds from China will strengthen it in the future.
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Mike McGlone, chief commodity strategist at Bloomberg, took to Twitter to share how crypto markets are reacting to China’s ban on cryptocurrency miners, and what impact it could have on Bitcoin in the long run.
Expert McGlone believes that the digitization of money is now growing, thanks to the Chinese government’s policy against cryptocurrency miners and cryptocurrency traders. The first chart he shared shows that Tether has seen a huge increase in USDT market cap this year, but the price of Bitcoin has dropped to $33,268.
McGlone tweeted that headwinds from China, which is increasingly hostile to its digital gold rival, could turn into a wind of reinforcement in the long run. McGlone said:
The second chart shows the drop in Bitcoin hash rate caused by Chinese authorities forcing large local mining companies to move out of the country to North America and Kazakhstan.
Bitcoin Hash Rate Dropped
BTC hash rate hits lowest level since July 2019: 58 EH/s point. Among the companies that suffered from the Chinese crypto ban, lost more than half of their hashrate and started to move their businesses outside of China, there are giants such as BTC.com, Antpool and Poolin.