Crypto Analyst: Chinese Miners Sell BTC to either Exit the Market or Change Country

According to Lark Davis, Chinese miners are forced to either shut shop or move shop. He also added that they are selling Bitcoin to either exit the market or move to another country.

Lark Davis tweeted data from Glassnode showing Miner Net Position Change. Also, the data shows that the miner distribution over the past 2 weeks changed. It changed from positive to negative.

The crypto analyst and trader said that Chinese miners had to either shut shop or move shop. This resulted in them selling bitcoin to either exit the market and recoup investments. “Or to fund their move to greener pastures like Kazakstan or Texas,” he added.

Furthermore, Lark’s tweet comes amid a crackdown on crypto mining works in China. On Friday, the Sichuan branch of the National Development and Reform Commission (NDRC) issued an order to crackdown on BTC mining.

As per local authorities, they shut down 26 crypto mining businesses. Also, the notice stressed these firms are in five cities and regions in Sichuan province.

Based on data, 65% to 75% of the world’s bitcoin mining happened in China. It happened in four Chinese provinces. More so, it includes Xinjiang, Inner Mongolia, Sichuan, and Yunnan.

China’s BTC policy pushed miners like AlejandroDe La Torre from cutting their losses and making an exit. De La Torre is the vice president of Hong Kong-based mining pool Pooling.

De La Torre said they don’t want to face some new ban coming in China every year. “So we’re trying to diversify our global mining hashrate, and that’s why we are moving to the United States and to Canada,” he added.

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Source: https://coinquora.com/crypto-analyst-chinese-miners-sell-btc-to-either-exit-the-market-or-change-country/