Bears have made it difficult for the Bulls to visit Bitcoin and Ethereum. Consequently, this has been a brutal couple of days as the two coins bid goodbye to their dreams of achieving a bullish “super-cycle”.
As of press time, the father of all crypto coins is down more than 15% over the past week as China stops mining activity one state at a time. The beta coin, Ethereum, hasn’t fared much better. It dropped nearly 20% over the same time frame.
Continued development towards a key code change has done little to protect the beta coin from falling. This code change called, Ethereum Improvement Proposal (EIP) 1559, will make Ethereum’s transaction fees, and gas fees, more predictable for users among other changes.
On June 18, an Ethereum developer and member of the Ethereum Foundation, Tim Heiko announced the key hard fork which includes EIP-1559, would launch on testnet this week.
Even after this announcement, Ethereum continued plummeting. Over the past 24 hours (from press time), Ether is down more than 8%.
Bitcoin Continues Plummeting Following China’s mining ban
The alpha coin’s recent slip makes much sense given the ongoing suppression of the crypto miners in China. Five different provinces in China have already stopped Bitcoin miners. These provinces include Xinjiang, Qinghai, Yunnan, and Inner Mongolia.
There have been significant results given how much influence the Chinese miners have over the network. Miners in this country are responsible for over 65% of the network’s hash rate. This is according to Cambridge Centre for Alternative Finance.
If you aren’t familiar with the term, hash rate is the metric used in measuring how much computing power is needed to secure the network.
Subsequently, the network’s hash rate has fallen roughly to 39% from its highs back in May 2021 according to BitInfoChart. At press time the hash rate of the alpha coin rests at 104.748.
China’s crypto rules have been the most influential force on the recent BTC price action.
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