The BTC exchange rate increased by 9.2% over the week, with the main share of the rise coming at the end of the week, when concerns about China subsided, and the market was ready to buy back previous sales.
All week, investors have been analyzing China’s ban on mining cryptocurrencies
This negatively affected the BTC rate. Restrictions were introduced gradually, but in July, the State Energy Corporation began to monitor options for using access to energy networks for mining cryptocurrencies in all regions. The extraction of digital money on Chinese territory became illegal, mining farms were shut down, and equipment was turned off. The finale of this drama was the ban on mining in Anhui and Guangxi provinces.
Why is China so negative about cryptocurrencies and mining? He sees here the risks of money laundering and opaque cross-border transfers, as well as multiple conditions for capital loss. That is why the Chinese factor turned out to be so significant for the cryptocurrency market.
By the end of the week, the situation was corrected by Elon Musk with statements that his company Tesla (NASDAQ: TSLA) may soon resume accepting cryptocurrencies as payments for cars. In addition, another of his enterprises, SpaceX, is buying BTC right now.
So, the flagship cryptocurrency is trading above $34170 and can go to $35400 if the market manages to hold on to its current positions.