A very short post today as it’s the first day proper back at work and I’ve a few other posts on the go in the background. Anyhow, it’s been an interesting couple of days.
Over the weekend, BTC rallied and reached £12,000-12,300 a few times. However today there has been a major drop of £1500+ down to the £10,600 mark before a little recovery.
It seems most likely that this was caused by the news from China that they were looking to start moving Crypto mining out of their economy. Essentially removing subsidised power and other support, and asking local governments to begin an orderly shutdown of companies acting in this space.
What I find interesting, is that logically when BTC drops in price Alts in comparison should go up. However, what seems to happen is that Alts also take a massive hit, followed by a recovery against BTC. So it seems that there is a boost to Alts when BTC drops, but not before everything drops first. As always, timing is everything.
Anyhow, it will be interesting to see how this pans out. China have been moving in this direction for a while. The first time in my experience in Crypto was the restrictions on ICOs which gave NEO a massive hit and cost me a chunk of money (only because I panic sold…). It will be interesting to see how the market recovers. There are other places to mine so medium term I doubt this will cause a major dent, however it maybe will accelerate the trend towards Proof of Stake coins versus Proof of Work. More on that on another post soon.