Bitcoin Today: Floods in China = BTC decline?

2018年7月10日

Price
Yesterday lateral movement ended by meeting with the Bullish Trend Line and breaking downwards after an attempt to take 6800.0 level. Price broke below the 6600.0 level, which probably has triggered stop orders of many and went downwards. The fall has stopped above the 6400.0 level; a 6300 – 6400 zone should play a supportive role for the price, a breakthrough of this zone could send price to the 6000.0 level and decline the whole July uptrend formation.

Today forecast
Trading in the 6300.0 – 6600.0 zone. A breakthrough below 6300.0 – bearish signal.

Latest news

• BITCOIN has been hit by an extreme weather warning with the floods in China.
  BITCOIN has been hit by an extreme weather warning with the floods in China affecting crypto ‘miners’.
  Burst river banks and the mass evacuation of people in China hit bitcoin’s “hash rate” this week, causing alarm on social media after mining stuttered and slowed.
  The slowing of bitcoin’s hashrate points to the concerning dependency of cryptocurrencies on China’s miners, and how extreme weather, war or a government clampdown could smash the global bitcoin mining industry.
  The “hashrate” is simply understood as the speed at which a computer processes the bitcoin code with a higher hash increasing the chance that miners unearth the next block and receive the reward.
  Miners use banks of powerful computers to solve complex maths problems to form new transactions. China is a crypto mining hotspot because electricity is cheap and workspace is plentiful.
  On Reddit, user Homopit said: “A flood happened somewhere in China, flooding some big mining farms. There were pictures posed here of the ruined hardware.
  “Hashrate dropped suddenly on that day.”
  Chinese miners produce between 50 and 70 per cent of the world’s bitcoins, the floods expose just how vulnerable bitcoin is to disruption in China. Morgan Stanley analysts estimate that the Sichuan floods could affect up to 8-10 percent of global bitcoin mining activity.
  
• US Financial Authority Asks Brokerage Firms to Disclose Crypto Activities
  The Financial Industry Regulatory Authority has issued a notice encouraging every firm that sells securities to the public in the U.S. to disclose any activities “related to digital assets, such as cryptocurrencies and other virtual coins and tokens.”
  With few exceptions, the Authority explains that in addition to registering with the U.S. Securities and Exchange Commission (SEC):
  “Every firm and broker that sells securities to the public in the United States must be licensed and registered by FINRA.”