It has been over two and a half months since the Chinese crackdown initiated over the cryptocurrency and Bitcoin (BTC) activities in the country. Since then, the Chinese regulators have been constantly cracking down on firms and projects currently operating in the cryptocurrency space.
The regulators are also taking strict action against the firms that are not directly dealing in cryptocurrencies but facilitating firms from the crypto-verse.
In China, the most prominent cryptocurrency was Bitcoin that the country’s mining community was mining at a very large rate. As per data from several cryptocurrency data analyzing firms, Chinese mining firms were responsible for generating over 34% of the total hashrate in the entire world.
Now, the cryptocurrency mining sector in China has been completely shut down by the regulators. They have issued orders to every mining firm in the country to seize cryptocurrency mining activities, or face legal consequences.
The regulatory authorities have even issued orders for the power supplying companies to stop providing electricity to mining farms and companies in the country. By doing this they have ensured that the mining activities in the country are completely taken down.
Following the crackdown initiated by the regulators back in May of 2021, the Chinese regulators have issued yet another warning. It is again an intimation for the cryptocurrency as well as financial service providing firms to stop dealing in cryptocurrencies right away.
As a result, Bitcoin has observed a significant drop in its demand and supply. Moreover, the digital asset has also experienced a price drop. This is the reason why the majority of the cryptocurrency/Bitcoin investors now have low/dwindling sentiments around Bitcoin.
At a time like this, the CEO of BitGo, Mike Belshe has commented on the current situation of Bitcoin and where he sees it in the long term. BitGo is a financial services company that deals in digital assets such as Bitcoin and altcoins.
The statement made by Belshe in regards to the current situation of Bitcoin is somewhat promising and motivating for the Bitcoin community. Belshe has stated that the recent events and the downtrend being observed in the cryptocurrency industry would prove to be beneficial for Bitcoin in the long run.
According to Belshe, the majority of the cryptocurrency investment community at the moment thinks that Bitcoin is done for. However, it is a fact about Bitcoin that it has been pronounced more than 400 times in the industry.
Still, after all the commotion and pressure, Bitcoin has always prevailed and this time as well, Bitcoin is going to see the same situation.
As observed in the past, such situations have always helped Bitcoin go back into the background and gain momentum until it is ready to breakout. This time again, Bitcoin is going to demonstrate the same bullish nature as soon as it is ready to breakout.